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At a certain rate per annum, the simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80. The rate of interest per annum is
- a)4%
- b)6%
- c)8%
- d)10%
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
At a certain rate per annum, the simple interest on a sum of money for...
Formula :
SI = (P × r × t)/100
Where p is the sum, r is rate and t is the time in years.
Given, simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80.
⇒ 260 = (p × r)/100
⇒ r = 200/25
⇒ r = 8
SI = (P × r × t)/100
Where p is the sum, r is rate and t is the time in years.
Given, simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80.
⇒ 260 = (p × r)/100
⇒ r = 200/25
⇒ r = 8
Most Upvoted Answer
At a certain rate per annum, the simple interest on a sum of money for...
Given Information:
- Simple Interest (SI) on a sum of money for one year = Rs. 260
- Compound Interest (CI) on the same sum for two years = Rs. 540.80
To Find:
- Rate of interest per annum
Assumption:
Let's assume that the principal amount on which the interest is calculated is 'P'.
Formula:
Simple Interest (SI) = (P * R * T) / 100
Compound Interest (CI) = P * (1 + R/100)^T - P
Where,
R = Rate of interest per annum
T = Time in years
Calculation:
We are given that SI is Rs. 260 and CI is Rs. 540.80.
Step 1:
Let's calculate the compound interest for each year separately.
CI for the first year = CI for 2 years - CI for 1 year
CI for the first year = Rs. 540.80 - SI for 1 year
CI for the first year = Rs. 540.80 - Rs. 260
CI for the first year = Rs. 280.80
Step 2:
Now, we can use the formula for CI to calculate the rate of interest per annum.
CI = P * (1 + R/100)^T - P
280.80 = P * (1 + R/100)^1 - P
Simplifying the equation, we get:
280.80 = P * (1 + R/100) - P
280.80 = P * (1 + R/100 - 100/100)
280.80 = P * (R/100)
2.808 = R/100
Step 3:
To find the value of R, we multiply both sides of the equation by 100.
2.808 * 100 = R
280.8 = R
Final Answer:
The rate of interest per annum is 8%. Therefore, option (c) is the correct answer.
- Simple Interest (SI) on a sum of money for one year = Rs. 260
- Compound Interest (CI) on the same sum for two years = Rs. 540.80
To Find:
- Rate of interest per annum
Assumption:
Let's assume that the principal amount on which the interest is calculated is 'P'.
Formula:
Simple Interest (SI) = (P * R * T) / 100
Compound Interest (CI) = P * (1 + R/100)^T - P
Where,
R = Rate of interest per annum
T = Time in years
Calculation:
We are given that SI is Rs. 260 and CI is Rs. 540.80.
Step 1:
Let's calculate the compound interest for each year separately.
CI for the first year = CI for 2 years - CI for 1 year
CI for the first year = Rs. 540.80 - SI for 1 year
CI for the first year = Rs. 540.80 - Rs. 260
CI for the first year = Rs. 280.80
Step 2:
Now, we can use the formula for CI to calculate the rate of interest per annum.
CI = P * (1 + R/100)^T - P
280.80 = P * (1 + R/100)^1 - P
Simplifying the equation, we get:
280.80 = P * (1 + R/100) - P
280.80 = P * (1 + R/100 - 100/100)
280.80 = P * (R/100)
2.808 = R/100
Step 3:
To find the value of R, we multiply both sides of the equation by 100.
2.808 * 100 = R
280.8 = R
Final Answer:
The rate of interest per annum is 8%. Therefore, option (c) is the correct answer.
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At a certain rate per annum, the simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80. The rate of interest per annum isa)4%b)6%c)8%d)10%Correct answer is option 'C'. Can you explain this answer?
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At a certain rate per annum, the simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80. The rate of interest per annum isa)4%b)6%c)8%d)10%Correct answer is option 'C'. 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 At a certain rate per annum, the simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80. The rate of interest per annum isa)4%b)6%c)8%d)10%Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for At a certain rate per annum, the simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80. The rate of interest per annum isa)4%b)6%c)8%d)10%Correct answer is option 'C'. Can you explain this answer?.
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