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The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?
- a)4000
- b)8000
- c)5000
- d)10000
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
The equal principal is invested in schemes of compound interest and si...
We know the formula for simple interest-
SI = (P × T × R)/100
Where,
SI = Simple interest
P = Principal
R = Rate of interest
T = Time period
⇒ 3200 = (P × 2 × 20)/100
⇒ P = Rs. 8000
∴ The principal amount = Rs. 8000
Most Upvoted Answer
The equal principal is invested in schemes of compound interest and si...
Understanding the Problem
We need to find the principal amount (P) invested in two schemes: one for compound interest (CI) and the other for simple interest (SI). The interest earned after 2 years in each scheme is given as follows:
- Compound Interest (CI) = Rs. 3520
- Simple Interest (SI) = Rs. 3200
The rate of interest is 20%.
Calculating Simple Interest
The formula for Simple Interest is:
SI = (P * R * T) / 100
Where:
- P = Principal
- R = Rate of interest (20%)
- T = Time (2 years)
Plugging in the values:
3200 = (P * 20 * 2) / 100
This simplifies to:
3200 = (40P) / 100
Multiplying both sides by 100:
320000 = 40P
Now, solving for P:
P = 320000 / 40 = 8000
Calculating Compound Interest
The formula for Compound Interest is:
CI = P * (1 + R/100)^T - P
For 2 years, this becomes:
CI = P * [(1 + 0.20)^2 - 1]
Calculating (1 + 0.20)^2:
(1.20)^2 = 1.44
So, CI = P * (1.44 - 1) = P * 0.44
Setting this equal to the given CI:
3520 = P * 0.44
Solving for P:
P = 3520 / 0.44 = 8000
Conclusion
Both calculations confirm that the principal amount is Rs. 8000. Therefore, the correct answer is option 'B'.
We need to find the principal amount (P) invested in two schemes: one for compound interest (CI) and the other for simple interest (SI). The interest earned after 2 years in each scheme is given as follows:
- Compound Interest (CI) = Rs. 3520
- Simple Interest (SI) = Rs. 3200
The rate of interest is 20%.
Calculating Simple Interest
The formula for Simple Interest is:
SI = (P * R * T) / 100
Where:
- P = Principal
- R = Rate of interest (20%)
- T = Time (2 years)
Plugging in the values:
3200 = (P * 20 * 2) / 100
This simplifies to:
3200 = (40P) / 100
Multiplying both sides by 100:
320000 = 40P
Now, solving for P:
P = 320000 / 40 = 8000
Calculating Compound Interest
The formula for Compound Interest is:
CI = P * (1 + R/100)^T - P
For 2 years, this becomes:
CI = P * [(1 + 0.20)^2 - 1]
Calculating (1 + 0.20)^2:
(1.20)^2 = 1.44
So, CI = P * (1.44 - 1) = P * 0.44
Setting this equal to the given CI:
3520 = P * 0.44
Solving for P:
P = 3520 / 0.44 = 8000
Conclusion
Both calculations confirm that the principal amount is Rs. 8000. Therefore, the correct answer is option 'B'.
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The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?a)4000b)8000c)5000d)10000Correct answer is option 'B'. Can you explain this answer?
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The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?a)4000b)8000c)5000d)10000Correct answer is option 'B'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?a)4000b)8000c)5000d)10000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?a)4000b)8000c)5000d)10000Correct answer is option 'B'. Can you explain this answer?.
The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?a)4000b)8000c)5000d)10000Correct answer is option 'B'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?a)4000b)8000c)5000d)10000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?a)4000b)8000c)5000d)10000Correct answer is option 'B'. Can you explain this answer?.
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The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?a)4000b)8000c)5000d)10000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?a)4000b)8000c)5000d)10000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of The equal principal is invested in schemes of compound interest and simple interest. The interest obtained in the compound interest and in the simple interest schemes after 2 years is Rs. 3520 and Rs. 3200 respectively. If the rate of interest is 20%, then what is the principal (in Rs.)?a)4000b)8000c)5000d)10000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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