The difference between the compound interest and simple interest on a certain sum at 10%

The difference between the compound interest and simple interest on a certain sum at 10%
per annum for 2 years is Rs. 631. The sum is
(1) Rs. 63,000
(2) Rs. 63,100
(3) Rs. 63,500
(4) Rs. 63,600

Anurag Mishra Professor Asked on 19th April 2016 in Maths.
Add Comment
  • 1 Answer(s)

    Answer: (2) Rs.63,100

    Solution:-
    Let the sum be Rs.X
    The difference between compound interest and simple interest = Rs.631
    Time = 2 years and Rate of Interest = 10%

    Then, [X (10/100 + 1)2 – X] – X x 10 x 2/100 = 631
    (121 X/100 – X) – 20 X/100 = 631
    21 X/100 – 20 X/100 = 631
    X = 631 x 100
    X = 63,100

    Then, the sum is Rs.63,100.

    Hence, the correct answer is option (2) Rs.63,100.

    Anurag Mishra Professor Answered on 20th April 2016.
    Add Comment
  • Your Answer

    By posting your answer, you agree to the privacy policy and terms of service.