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On a certain sum of money the simple interest for 2...

This question belongs to Arithmetic Ability Compound Interest
Compound Interest
?

On a certain sum of money, the simple interest for 2 years is Rs 350 at the rate of 4% per annum. If it was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned?

Answer & Solution
Correct Answer: Option B
Simple Interest (I) = $$\frac{{PTR}}{{100}}$$
350 = $$\frac{{P \times 2 \times 4}}{{100}}$$
P = 4375
Compound Interest mcq solution image
C.I = 175 + 175 + 7 = 357
Difference = 357 - 350 = Rs. 7
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