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The simple interest accrued on a sum of certain principal is Rs. 6500/- in eight years at the rate of 13 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 8 p.c.p.a. in 2 years?
  • a)
    Rs. 1040/-
  • b)
    Rs. 1020/-
  • c)
    Rs. 1060/-
  • d)
    Rs. 1200/-
  • e)
    None of these
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The simple interest accrued on a sum of certain principal is Rs. 6500/...
The corect option is A by using compound formulae  the amount comes to be 1040. 
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Most Upvoted Answer
The simple interest accrued on a sum of certain principal is Rs. 6500/...
Given:
Simple interest = Rs. 6500/-
Time = 8 years
Rate of interest = 13 p.c.p.a.

To find:
Compound interest at the rate of 8 p.c.p.a. in 2 years.

Formula used:
Simple interest = (P×R×T)/100
Compound interest = P[(1 + R/100)ᵗ - 1]

Calculation:

Let P be the principal amount.

Simple interest = (P×R×T)/100

⇒ 6500 = (P×13×8)/100

⇒ P = (6500×100)/(13×8) = Rs. 62500/-

Compound interest = P[(1 + R/100)ᵗ - 1]

⇒ Compound interest = 62500[(1 + 8/100)² - 1]

⇒ Compound interest = 62500[(1.08)² - 1]

⇒ Compound interest = 62500[0.1664]

⇒ Compound interest = Rs. 1040/-

Therefore, the compound interest accrued on the principal at the rate of 8 p.c.p.a. in 2 years is Rs. 1040/-.

Hence, the correct answer is option (A).
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The simple interest accrued on a sum of certain principal is Rs. 6500/...
Correct answer is option (a)
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The simple interest accrued on a sum of certain principal is Rs. 6500/- in eight years at the rate of 13 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 8 p.c.p.a. in 2 years?a)Rs. 1040/-b)Rs. 1020/-c)Rs. 1060/-d)Rs. 1200/-e)None of theseCorrect answer is option 'A'. Can you explain this answer?
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The simple interest accrued on a sum of certain principal is Rs. 6500/- in eight years at the rate of 13 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 8 p.c.p.a. in 2 years?a)Rs. 1040/-b)Rs. 1020/-c)Rs. 1060/-d)Rs. 1200/-e)None of theseCorrect answer is option 'A'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about The simple interest accrued on a sum of certain principal is Rs. 6500/- in eight years at the rate of 13 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 8 p.c.p.a. in 2 years?a)Rs. 1040/-b)Rs. 1020/-c)Rs. 1060/-d)Rs. 1200/-e)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The simple interest accrued on a sum of certain principal is Rs. 6500/- in eight years at the rate of 13 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 8 p.c.p.a. in 2 years?a)Rs. 1040/-b)Rs. 1020/-c)Rs. 1060/-d)Rs. 1200/-e)None of theseCorrect answer is option 'A'. Can you explain this answer?.
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