InterviewSolution
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An amount of Rs. 43,892 is lent to each of two persons for 3 years. One at the rate of 30% simple interest and the other at the rate of 30% compound interest, compounded annually. by what percentage will the simple interest be less than the compound interest received in this 3 - year duration (correct to one decimal place)?1. 24.7%2. 23.8%3. 22.7%4. 25.7% |
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Answer» Correct Answer - Option 1 : 24.7% Given: The principal of each person is Rs.43892. The first on SI at rate of 30% for 3 years. The second on CI at rate of 30% for 3 years. Formula Used: SI = P × R × T/100 Amount = P[1 + R/100]n CI = Amount - Principal Calculation: The principal of each person is Rs.43892. The first on Simple Interest at rate of 30% for 3 years. Simple Interest = 43892 × 30 × 3/100 = Rs.39502.8 The second on Compound Interest at rate of 30% for 3 years. Amount = 43892[1 + 30/100]3 ⇒ 43862 × 130/100 × 130/100 × 130/100 ⇒ Rs.96364.81 Compound Interest= 96364.81 - 43892 = Rs.52472.81 The difference between Compound Interest and Simple Interest = Rs.12970.01 The percentage = 12970.01/52472.81 × 100 = 24.7% ∴ The percentage simple interest be less than the compound interest is 24.7%. |
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