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A sum becomes Rs. 2916 in 2 years at 8% per annum compound interest. The simple interest at 9% per annum for 3 years on the same amount will be = ?
Answer & Solution
Correct Answer:
Option
B
$$\eqalign{
& {\text{Amount = Rs}}{\text{. 2916}} \cr
& {\text{Time = 2 years }} \cr
& {\text{Rate = 8}}\% \cr
& {\text{Effective rate }}\% {\text{ CI for 2 years}} \cr
& {\text{ = 8 + 8 + }}\frac{{8 \times 8}}{{100}} = 16.64\% \cr
& {\text{Required sum}} \cr
& {\text{ = }}\frac{{2916}}{{\left( {100 + 16.64} \right)}} \times 100 \cr
& = {\text{Rs}}{\text{. }}2500 \cr
& {\text{Required simple interest}} \cr
& {\text{ = }}\frac{{2500 \times 9 \times 3}}{{100}} \cr
& = {\text{Rs}}{\text{. }}675 \cr} $$
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