Multiple choice

A sum becomes rupees 2916 in 2 years at 8% per annum compound interest. The simple interest at 9% per annum for 3 years on the same amount will be

  1. 600

  2. 675

  3. 650

  4. 625
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using compound interest formula A = P(1 + r/100)^n: 2916 = P(1 + 8/100)^2 = P(1.08)^2 = P × 1.1664. Principal P = 2916/1.1664 = Rs. 2500. Simple interest at 9% for 3 years = P × R × T / 100 = 2500 × 9 × 3 / 100 = Rs. 675.

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