Question

The compound interest on Rs. 4,000 for 2 years at 10% per annum is double the Simple interest on a certain sum of money for 3 years at 8% per annum. The sum placed on simple interest is :

• A. Rs. 1,750
• B. Rs. 1,850
• C. Rs. 1,650
• D. Rs. 1,950

Answer 1

Answer:

A. Rs. 1,750

Principle= Rs 4000 time=2 year Rate=10% Compound interest=P×(1+r)^n−P I=P{(1+r)^n−1} I=4000(1+.10)^2−1 I=4000(1.21−1) I=840 Simple interest = 840/2 = 420 = PRT/100 I = 420 = P×0.08×3 I=1750Rs