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Compound Interest · Discussion forum

General Questions Question 19 – answer, explanation & discussion

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Question 19 Back to Exercise
The simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on ₹ 4000 for 2 years at 10% per annum. The sum placed on simple interest is:

  • A ₹ 1550
  • B ₹ 1650
  • C ₹ 1750 Correct
  • D ₹ 2000
Correct Answer: Option C

C.I.
= ₹ [ 4000 x ( 1 + 10 ) 2 - 4000 ]
100
= ₹ ( 4000 x 11 x 11 - 4000 )
10 10
= ₹ 840.

∴ Sum = Rs. ( 420 x 100 ) = ₹ 1750.
3 x 8

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