Multiple choice

A man earn compound interest of Rs. 831.0784 in 3 years at a rate of 8% per annum. Find the simple interest earned by him on same sum and same rate of interest in 4 years.

  1. 968 Rs.

  2. 1024 Rs.

  3. 1052 Rs.

  4. 1148 Rs.

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let the principal be P. Compound interest for 3 years at 8%: CI = P(1 + 0.08)³ - P = P(1.259712 - 1) = 0.124864P = 831.0784. So P = 831.0784/0.124864 ≈ 6656.78. Simple interest for 4 years at 8%: SI = P × 8% × 4 = 6656.78 × 0.08 × 4 ≈ 2130.17. Wait, this doesn't match. Let me recalculate: CI = P((1.08)³ - 1) = P × 0.259712 = 831.0784, so P = 831.0784/0.259712 ≈ 3200. Then SI = 3200 × 0.08 × 4 = 1024, making option B correct.

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