Multiple choice

On a certain sum of money, the difference between the compound interest for a year, payable half - yearly and the simple interest for a year is Rs.150. If the rate of interest in both the cases is 10%, then the sum is

  1. Rs.60000

  2. Rs.72000

  3. Rs.62000

  4. Rs.54000

  5. Rs.65000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let sum be P. CI half-yearly: rate = 5% per half-year. CI = P[(1.05)^2 - 1] = P[1.1025 - 1] = 0.1025P. SI yearly: SI = P×0.10×1 = 0.10P. Difference: 0.1025P - 0.10P = 0.0025P = 150, so P = 150/0.0025 = 60000. Option A is correct.

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