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The difference between compounded interest and simple interest on a certain sum for one year at 5% per 6 months is Rs 3. The sum is

  • a)
    Rs 1200

  • b)
    Rs 1250

  • c)
    Rs 1100

  • d)
    Rs 1150

Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
The difference between compounded interest and simple interest on a ce...
Solution:

Given, rate of interest = 5%, time = 1 year.

Let the sum be Rs. x.

Interest for first 6 months = x * 5/100 = 0.05x

Interest for next 6 months = x * 5/100 = 0.05x

Simple interest for one year = 0.05x + 0.05x = 0.1x

Compounded interest for one year = x(1 + 5/100)^2 - x = x(21/20)^2 - x = 441x/400 - x = 41x/400

Difference between compounded interest and simple interest = 41x/400 - 0.1x = 3

41x/400 - 0.1x = 3

41x - 40x = 1200

x = 1200

Therefore, the sum is Rs. 1200.

Hence, option (a) is the correct answer.
Free Test
Community Answer
The difference between compounded interest and simple interest on a ce...
SI = P ×1 × 10 ÷100
SI = P ÷10

CI = P × ( 1+ 5÷100)^2 -P
CI = P × (21÷20)^2 - P
CI = P × (441÷400) - P

CI = P × (41÷400)

CI - SI = P × ( 41÷400) - P ÷ 10
3 = P ×【41÷400 - 1÷10】
3 = P × (1÷400)
P = 3 × 400
P = 1200
hence option (A)
nice question keep asking.
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The difference between compounded interest and simple interest on a certain sum for one year at 5% per 6 months is Rs 3. The sum isa)Rs 1200b)Rs 1250c)Rs 1100d)Rs 1150Correct answer is option 'A'. Can you explain this answer?
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