Multiple choice

The difference between compound interest and simple interest on Rs. x at 11% per annum for 2 years is Rs. 60.50. What is the value of x?

  1. 4,800

  2. 4,000

  3. 5,000

  4. 4,500
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Difference between CI and SI for 2 years = P * (r/100)^2. 60.50 = x * (11/100)^2 = x * 0.0121. x = 60.50 / 0.0121 = 5000.

AI explanation

Using the formula for the difference between compound interest and simple interest for two years, we have Difference = Principal * (Rate / 100)^2. Substituting the values gives 60.50 = x * (11 / 100)^2, which simplifies to 60.50 = x * 0.0121. Solving for x gives x = 5000, making the result 5,000.

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