Multiple choice

A man deposited two equal amount in a bank at the same rate of interest. If the difference between CI and SI for 4 years is Rs.434 more than difference between CI and SI for 3 years and rate of interest is 12.5% p.a. Then find each amount deposited by him ?

  1. Rs.8000

  2. Rs.7850

  3. Rs.8192

  4. Rs.10000

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

The difference between CI and SI for n years is P[(1 + r/100)^n - 1 - nr/100]. For n=3 at 12.5%, this is P[(1.125)^3 - 1 - 0.375] = P[0.0488]. For n=4, it is P[(1.125)^4 - 1 - 0.5] = P[0.1018]. The difference is P[0.052979] = 434, so P = 8192.

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