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The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum is:
- a)Rs.600
- b)Rs.645
- c)Rs.525
- d)Rs.625
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
The difference between simple and compound interests compounded annual...
sum = Rs.x
C.I = [x(1+4/100)^2-x] = (676/625x-x) = 51/625
S.I = (x*4*2)/100 = 2x/25
x = 625
Most Upvoted Answer
The difference between simple and compound interests compounded annual...
Given:
- Time period (n) = 2 years
- Rate of interest (r) = 4% per annum
- Difference between compound interest and simple interest = Re. 1
To Find:
The principal sum (P)
Formula:
1. Simple Interest (SI) = P * r * n / 100
2. Compound Interest (CI) = P * (1 + r/100)^n - P
Calculation:
Let's assume the principal sum is P.
Step 1: Calculate Simple Interest (SI):
SI = P * r * n / 100
Step 2: Calculate Compound Interest (CI):
CI = P * (1 + r/100)^n - P
Step 3: Calculate the Difference between CI and SI:
Difference = CI - SI
Re. 1 = P * (1 + r/100)^n - P - P * r * n / 100
Step 4: Substitute the given values:
Re. 1 = P * (1 + 4/100)^2 - P - P * 4 * 2 / 100
Re. 1 = P * (1 + 0.04)^2 - P - P * 0.08
Step 5: Simplify the equation:
Re. 1 = P * (1.04)^2 - P - 0.08P
Re. 1 = P * 1.0816 - P - 0.08P
Re. 1 = 1.0816P - P - 0.08P
Re. 1 = 0.0016P
Step 6: Solve for P:
Re. 1 = 0.0016P
P = Re. 1 / 0.0016
P = Rs. 625
Therefore, the principal sum is Rs. 625. Hence, the correct answer is option D.
- Time period (n) = 2 years
- Rate of interest (r) = 4% per annum
- Difference between compound interest and simple interest = Re. 1
To Find:
The principal sum (P)
Formula:
1. Simple Interest (SI) = P * r * n / 100
2. Compound Interest (CI) = P * (1 + r/100)^n - P
Calculation:
Let's assume the principal sum is P.
Step 1: Calculate Simple Interest (SI):
SI = P * r * n / 100
Step 2: Calculate Compound Interest (CI):
CI = P * (1 + r/100)^n - P
Step 3: Calculate the Difference between CI and SI:
Difference = CI - SI
Re. 1 = P * (1 + r/100)^n - P - P * r * n / 100
Step 4: Substitute the given values:
Re. 1 = P * (1 + 4/100)^2 - P - P * 4 * 2 / 100
Re. 1 = P * (1 + 0.04)^2 - P - P * 0.08
Step 5: Simplify the equation:
Re. 1 = P * (1.04)^2 - P - 0.08P
Re. 1 = P * 1.0816 - P - 0.08P
Re. 1 = 1.0816P - P - 0.08P
Re. 1 = 0.0016P
Step 6: Solve for P:
Re. 1 = 0.0016P
P = Re. 1 / 0.0016
P = Rs. 625
Therefore, the principal sum is Rs. 625. Hence, the correct answer is option D.
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The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum is:a)Rs.600b)Rs.645c)Rs.525d)Rs.625Correct answer is option 'D'. Can you explain this answer?
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The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum is:a)Rs.600b)Rs.645c)Rs.525d)Rs.625Correct answer is option 'D'. 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 difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum is:a)Rs.600b)Rs.645c)Rs.525d)Rs.625Correct answer is option 'D'. 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 difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum is:a)Rs.600b)Rs.645c)Rs.525d)Rs.625Correct answer is option 'D'. Can you explain this answer?.
The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum is:a)Rs.600b)Rs.645c)Rs.525d)Rs.625Correct answer is option 'D'. 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 difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum is:a)Rs.600b)Rs.645c)Rs.525d)Rs.625Correct answer is option 'D'. 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 difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum is:a)Rs.600b)Rs.645c)Rs.525d)Rs.625Correct answer is option 'D'. Can you explain this answer?.
Solutions for The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum is:a)Rs.600b)Rs.645c)Rs.525d)Rs.625Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Quant.
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