Multiple choice

A certain sum of money becomes Rs. 6600 after 2 years at certain rate of simple interest, and it becomes Rs. 7200 after 4 years. Then find the C.I. on the same sum of money at 10% p.a. after 2 years compounded annually?

  1. Rs. 840

  2. Rs. 1260

  3. Rs. 630

  4. Rs. 1680

  5. Rs. 1540
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest for 2 years = 7200-6600 = 600. Simple interest per year = 300. Principal = 6600-600 = 6000. CI at 10% for 2 years: 6000(1.1²-1) = 6000 × 0.21 = 1260.

Keep practicing — related questions