Multiple choice

The difference in simple interest and compound interest on a certain sum of money in 3 years at 15% p.a. is Rs.453.6. The sum is-

  1. Rs. 6000

  2. Rs. 6200

  3. Rs. 6300

  4. Rs. 6400

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

The difference between compound and simple interest for 3 years at 15% is P[(1.15)³ - 1 - 0.45]. Solving: P[1.520875 - 1 - 0.45] = P[0.070875] = 453.6. Therefore P = 453.6/0.070875 = 6400. For verification: SI = 6400 × 0.15 × 3 = 2880. CI = 6400 × 0.520875 = 3333.6. Difference = 453.6.

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