Multiple choice

The difference between the compound interest and simple interest on Rs (x) at 12% per annum for 2 years is Rs 18. What is the value of (x)?

  1. 1,250

  2. 1,280

  3. 1,340

  4. 1,300

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

Simple Interest for 2 years at 12%: SI = P×12×2/100 = 0.24P. Compound Amount: P(1.12)² = 1.2544P, so CI = 0.2544P. Difference: CI-SI = 0.2544P-0.24P = 0.0144P = 18. Therefore P = 18/0.0144 = 1250. Option A matches.

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