Multiple choice

The simple interest accrued on a certain sum is Rs.40761 in 9 years at the rate of 7 p.c.p.a. What would be the compund interest accrued on that sum at the rate of 5 p.c.p.a. in 2 years?

  1. Rs.7631.75

  2. Rs.6613.75

  3. Rs.6631.75

  4. Rs.6630.75

  5. Rs.6836.75
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SI = Rs.40761 for 9 years @ 7%. Principal = 40761×100/(9×7) = Rs.64683.43. CI for 2 years @ 5% = 64683.43×[(1.05)²-1] = 64683.43×0.1025 = Rs.6631.75. Option A has misplaced decimal (7631.75), B and D have wrong digits (6613.75, 6630.75), E has wrong hundreds.

Keep practicing — related questions