A person lent a sum of Rs. 9000 on simple interest at 10% for 3 years.

1.	A person lent a sum of Rs. 9000 on simple interest at 10% for 3 years. Find the difference in interest received by him, if he had lent the same sum on compound interest at 20% for 2 years.1). Rs. 19602). Rs. 11603). Rs. 12604). Rs. 2700
Answer» Given, Principal = 9000, Rate% = 10% and Time = 3 years We KNOW that, SIMPLE interest = (P×R×T)/100 ⇒ SI = (9000×10×3)/100 = 2700 At compound interest, $(Amount = P{\left[ {1 + \frac{{r\% }}{{100}}} \right]^{time}})$ $(Amount = 9000 \times {\left[ {1 + \frac{{20}}{{100}}} \right]^2})$ ⇒ Amount = 12960 ⇒ CI = Amount - Principal ⇒ CI = 12960 - 9000 = 3960 ⇒ Difference of interest = CI - SI = 3960 - 2700 = 1260 Hence, 1260 will be the answer.

A person lent a sum of Rs. 9000 on simple interest at 10% for 3 years. Find the difference in interest received by him, if he had lent the same sum on compound interest at 20% for 2 years.1). Rs. 19602). Rs. 11603). Rs. 12604). Rs. 2700

Answer»

Given,

Principal = 9000, Rate% = 10% and Time = 3 years

We KNOW that,

SIMPLE interest = (P×R×T)/100

⇒ SI = (9000×10×3)/100 = 2700

At compound interest,

$(Amount = P{\left[ {1 + \frac{{r\% }}{{100}}} \right]^{time}})$

$(Amount = 9000 \times {\left[ {1 + \frac{{20}}{{100}}} \right]^2})$

⇒ Amount = 12960

⇒ CI = Amount - Principal

⇒ CI = 12960 - 9000 = 3960

⇒ Difference of interest = CI - SI = 3960 - 2700 = 1260

Hence, 1260 will be the answer.

Discussion

No Comment Found

Related InterviewSolutions

An amount compounded at the rate of interest of 20% per annum matures to be Rs. 14400 after 2 years. Find the simple interest on the same amount at the end of 2 years.1). Rs. 20002). Rs. 25003). Rs. 40004). Rs. 6000
1). 5%2). 8%3). 10%4). 15%
Veer Invested X Rs. in SBI at the rate of 8% for 2 year and obtained a total simple interest of Rs. 6400. If he invested Rs. 10000 more for same period at the rate of 5% for first year and at 10% for 2nd year compound annually, then find the total compound interest obtained by Veer after 2 year.1). Rs. 60002). Rs. 50003). Rs. 77504). Rs. 7000
Vijay invests a principal amount of Rs. 300000 in a fixed deposit for 2 years.The rate at which he invests is 20% per annum. What will be the simple interest earned by him at the end of his investment tenture?1). Rs. 220002). Rs. 130003). Rs. 1200004). Rs. 15600
The simple interest on a sum of money at 4% per annum for 2 years is Rs. 80. The compound interest in the same sum for the same period is1). Rs. 82.602). Rs. 82.203). Rs. 84.804). Rs. 81.60
Manisha borrowed a total amount of Rs. 40000, part of it on simple interest rate of 16% per annum and remaining on simple interest rate of 12% per annum. If at the end of 3 years she paid in all Rs. 56320 to settle the loan amount, what was the amount borrowed at 16% per annum?1). Rs. 160002). Rs. 180003). Rs. 175004). Rs. 12000
The simple interest on a certain sum of money after x years is Rs. 247.50 and after 2 more years is Rs. 412.50. Find the simple interest on the same sum at the same rate of interest after 10 years.1). Rs. 4952). Rs. 5773). Rs. 6604). Rs. 825
Find the compound interest on Rs. 20000 for 3 year, if the rate of interest is 5% for first year, 10% for the second year and 15% for the third year?1). Rs. 65152). Rs. 62653). Rs. 65554). Rs. 6665
The difference between CI and SI on an amount of Rs. 15625 for 2 years is Rs. 625. What is the rate of interest per annum?1). 12%2). 15%3). 16%4). 20%
Find the difference between CI and SI Rs. 2000 at a rate of 6% for 3 years compounded annually?1). 22.032). 243). 114). 21.75

A person lent a sum of Rs. 9000 on simple interest at 10% for 3 years. Find the difference in interest received by him, if he had lent the same sum on compound interest at 20% for 2 years.1). Rs. 19602). Rs. 11603). Rs. 12604). Rs. 2700

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment