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The difference between simple and Compound Interest on a sum of money for 2 yrs at 10% per annum is Rs 65. The sum is
- a)Rs 65650
- b)Rs 65065
- c)Rs 6565
- d)Rs 6500
Correct answer is option 'D'. Can you explain this answer?
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The difference between simple and Compound Interest on a sum of money ...
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Difference between Simple and Compound Interest:
The difference between simple interest and compound interest lies in the way interest is calculated and added to the principal amount.
Simple Interest:
In simple interest, the interest is calculated only on the principal amount for a specific time period. The formula to calculate simple interest is:
Simple Interest = (Principal Amount * Rate of Interest * Time) / 100
Compound Interest:
In compound interest, the interest is calculated on the principal amount as well as the previously earned interest for a specific time period. The formula to calculate compound interest is:
Compound Interest = Principal Amount * [(1 + Rate of Interest / 100) ^ Time - 1]
Given Information:
Principal Amount = Unknown
Time = 2 years
Rate of Interest = 10%
Difference between Compound Interest and Simple Interest = Rs 65
Calculating the Difference:
Let's assume the principal amount is P.
Simple Interest = (P * 10 * 2) / 100 = 0.2P
Compound Interest = P * [(1 + 10 / 100) ^ 2 - 1] = P * (1.1^2 - 1) = P * 0.21
Difference between Compound Interest and Simple Interest = Compound Interest - Simple Interest
65 = P * 0.21 - 0.2P
65 = 0.01P
P = 6500
Therefore, the sum of money is Rs 6500. The correct answer is option D.
The difference between simple interest and compound interest lies in the way interest is calculated and added to the principal amount.
Simple Interest:
In simple interest, the interest is calculated only on the principal amount for a specific time period. The formula to calculate simple interest is:
Simple Interest = (Principal Amount * Rate of Interest * Time) / 100
Compound Interest:
In compound interest, the interest is calculated on the principal amount as well as the previously earned interest for a specific time period. The formula to calculate compound interest is:
Compound Interest = Principal Amount * [(1 + Rate of Interest / 100) ^ Time - 1]
Given Information:
Principal Amount = Unknown
Time = 2 years
Rate of Interest = 10%
Difference between Compound Interest and Simple Interest = Rs 65
Calculating the Difference:
Let's assume the principal amount is P.
Simple Interest = (P * 10 * 2) / 100 = 0.2P
Compound Interest = P * [(1 + 10 / 100) ^ 2 - 1] = P * (1.1^2 - 1) = P * 0.21
Difference between Compound Interest and Simple Interest = Compound Interest - Simple Interest
65 = P * 0.21 - 0.2P
65 = 0.01P
P = 6500
Therefore, the sum of money is Rs 6500. The correct answer is option D.
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The difference between simple and Compound Interest on a sum of money for 2 yrs at 10% per annum is Rs 65. The sum isa)Rs 65650b)Rs 65065c)Rs 6565d)Rs 6500Correct answer is option 'D'. Can you explain this answer?
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The difference between simple and Compound Interest on a sum of money for 2 yrs at 10% per annum is Rs 65. The sum isa)Rs 65650b)Rs 65065c)Rs 6565d)Rs 6500Correct answer is option 'D'. 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 difference between simple and Compound Interest on a sum of money for 2 yrs at 10% per annum is Rs 65. The sum isa)Rs 65650b)Rs 65065c)Rs 6565d)Rs 6500Correct answer is option 'D'. 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 difference between simple and Compound Interest on a sum of money for 2 yrs at 10% per annum is Rs 65. The sum isa)Rs 65650b)Rs 65065c)Rs 6565d)Rs 6500Correct answer is option 'D'. Can you explain this answer?.
The difference between simple and Compound Interest on a sum of money for 2 yrs at 10% per annum is Rs 65. The sum isa)Rs 65650b)Rs 65065c)Rs 6565d)Rs 6500Correct answer is option 'D'. 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 difference between simple and Compound Interest on a sum of money for 2 yrs at 10% per annum is Rs 65. The sum isa)Rs 65650b)Rs 65065c)Rs 6565d)Rs 6500Correct answer is option 'D'. 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 difference between simple and Compound Interest on a sum of money for 2 yrs at 10% per annum is Rs 65. The sum isa)Rs 65650b)Rs 65065c)Rs 6565d)Rs 6500Correct answer is option 'D'. Can you explain this answer?.
Solutions for The difference between simple and Compound Interest on a sum of money for 2 yrs at 10% per annum is Rs 65. The sum isa)Rs 65650b)Rs 65065c)Rs 6565d)Rs 6500Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Railways.
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