What will be the Amount? If

A certain amount of money earns Rs.540 as Simple Interest in 3 years. If it earns a Compound Interest of Rs.376.20 at the same rate of interest in 2 years, find the amount. (in rupees)

  1. 2100
  2. 1600
  3. 1800
  4. 2000
Monis Rasool Professor Asked on 7th July 2015 in Maths.
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  • 1 Answer(s)

    Answer: (4) 2000
    Explanation:-
    The simple interest of three years = Rs.540
    Then, the simple interest of one year = 540/3 = Rs.180
    Therefore, the simple interest of two years = 2 x 180 = Rs.360

    The compound interest of two years = Rs. 376.20
    The difference between compound interest and simple interest of two years = 376.20 – 360 = 16.20
    If we take P = Rs.180 R = R% and time = 1 year
    Then, 180 x R x 1 /100 = 16.20
    18R = 162
    R = 162/18
    R = 9%
    Thus, P x 9 x 3 /100 = 540
    P = 2000
    Hence, the answer is (4) Rs.2000

    Anurag Mishra Professor Answered on 8th July 2015.
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