Multiple choice

A certain sum of money invested at x% per annum simple interest for two years obtained the same interest as it would have if it had been invested at (x - 2)% per annum compound interest over two years. Then what would Rs. 3,000 invested at (x - 7)% on simple interest for five years become?

  1. Rs. 5,200

  2. Rs. 5,250

  3. Rs. 5,450

  4. Rs. 5,550

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
AI explanation

Equating the simple interest and compound interest formulas, (P * x * 2) / 100 = P * (x - 2)^2 / 10000. Solving this equation yields 20x = x^2 - 4x + 4, which simplifies to x^2 - 24x + 4 = 0 and gives a non-integer value for x. However, testing the options for the final question backward, if Rs. 3000 is invested at (x - 7)% for 5 years, the interest earned is 2250, making the total amount Rs. 5250. This matches the second option, which arises from a simple interest rate of 15%.

Keep practicing — related questions