Multiple choice

A certain sum amounts to Rs. 29282 in 4 years at 10% per annum, when the interest is compounded annually. What is the simple interest on the same sum for the same time at the same rate?

  1. Rs. 8,500

  2. Rs. 8,000

  3. Rs. 7,600

  4. Rs. 8,400
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Compound interest formula: A = P(1 + r/100)^t. 29282 = P(1.1)^4 = P × 1.4641. Principal P = 29282/1.4641 ≈ 20000. Simple interest = P × r × t/100 = 20000 × 10 × 4/100 = 8000. Option B is correct.

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