Multiple choice

A sum of Rs. 60,000 amounts to Rs. 72,600 in 2 years at x% per annum interest compounded yearly. If the sum of Rs. 60,000 is invested at simple interest at y% per annum for 3 years, then the simple interest would have been Rs. 1800 more than earlier compound interest. Now, x is what percent of y?

  1. 120%

  2. 125%

  3. 95%

  4. 115%

  5. 110%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Compound interest on 60,000 for 2 years is 72,600 - 60,000 = 12,600. 60,000(1 + x/100)^2 = 72,600 implies (1 + x/100)^2 = 1.21, so x = 10. Simple interest for 3 years at y% is 60,000 * 3 * y / 100 = 1800y. Given 1800y = 12,600 + 1800 = 14,400, so y = 8. x is 10, y is 8. 10/8 = 1.25 or 125%.

AI explanation

From the first condition, 60000(1 + x/100)^2 = 72600, which means (1 + x/100)^2 = 1.21 and x equals 10. The compound interest earned is 12600; the simple interest for 3 years is 1800 more, making it 14400. Using I = (P * y * T) / 100, we get 14400 = (60000 * y * 3) / 100, so y equals 8. Therefore, x is (10/8) * 100 percent of y, which is 125%.

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