CAT Exam  >  CAT Questions  >  The simple intrest on a certain sum for 2 yea... Start Learning for Free
The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent?
Most Upvoted Answer
The simple intrest on a certain sum for 2 years is Rs.450 and the comp...
Given:
Simple Interest (S.I.) = Rs. 450
Compound Interest (C.I.) = Rs. 465
Time (T) = 2 years

To find:
Rate of Interest (R)

Solution:

We know that the formula for simple interest is:
S.I. = (P * R * T) / 100
where P is the principal amount, R is the rate of interest, and T is the time period.

Similarly, the formula for compound interest is:
C.I. = P * (1 + R/100)^T - P
where P is the principal amount, R is the rate of interest, and T is the time period.

Step 1: Finding the Principal amount
To find the principal amount, we can use the formula:
Principal (P) = (100 * S.I.) / (R * T)
Substituting the given values:
P = (100 * 450) / (R * 2)

Step 2: Calculating the Compound Interest
Using the formula for compound interest, we have:
465 = P * (1 + R/100)^2 - P
Simplifying the equation:
465 = P * ((1 + R/100)^2 - 1)
Dividing both sides by P:
465 / P = (1 + R/100)^2 - 1
Let x = (1 + R/100)^2
So, the equation becomes:
465 / P = x - 1

Step 3: Solving the equation
Now, we can substitute the value of P from Step 1 into the equation from Step 2:
465 / ((100 * 450) / (R * 2)) = x - 1
Simplifying the equation:
(465 * R * 2) / (100 * 450) = x - 1
Multiplying both sides by (100 * 450):
930 * R / 450 = 100 * x - 100

Step 4: Simplifying the equation
Dividing both sides by 930:
R / 450 = (100 * x - 100) / 930
Simplifying further:
R / 450 = (100x - 100) / 930

Step 5: Finding the value of R
Multiplying both sides by 450:
R = (450 * (100x - 100)) / 930
Simplifying:
R = 45 * (100x - 100) / 93

Step 6: Evaluating R
Now, we need to evaluate the value of R using the options given in the answer choices. We can substitute the values of R one by one and check which option satisfies the equation.

Once we find the correct value of R, we can calculate the principal amount (P) using the formula from Step 1.

Hence, the rate of interest and the principal amount can be determined using the given information.
Attention CAT Students!
To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.
Explore Courses for CAT exam

Top Courses for CAT

The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent?
Question Description
The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent?.
Solutions for The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent? defined & explained in the simplest way possible. Besides giving the explanation of The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent?, a detailed solution for The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent? has been provided alongside types of The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent? theory, EduRev gives you an ample number of questions to practice The simple intrest on a certain sum for 2 years is Rs.450 and the compound interest is Rs. 465. Find the rate per cent? tests, examples and also practice CAT tests.
Explore Courses for CAT exam

Top Courses for CAT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev