Multiple choice

The difference between compound interest and simple interest on Rs. p at 7.5% per annum for 2 years is Rs. 45. What is the value of p?

  1. 7000

  2. 8000

  3. 9000

  4. 10,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For 2 years, CI - SI = P * (r/100)^2. Given 45 = P * (7.5/100)^2. 45 = P * (0.075)^2. 45 = P * 0.005625. P = 45 / 0.005625 = 8000.

AI explanation

Using the formula for the difference between compound interest and simple interest for two years, Difference = P * (R/100)^2, we substitute the given values. The equation becomes 45 = p * (7.5/100)^2, which simplifies to 45 = p * 0.005625. Solving for p gives p = 45 / 0.005625, so the value of p is 8000.

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