Multiple choice

A sum of Rs. 91,000 is borrowed at 20% per annum compounded annually for two years. If it were borrowed at the rate of 100/7% per annum simple interest for four years then, find the difference between C.I and S.I

  1. Rs. 16,910

  2. Rs. 12,800

  3. Rs. 12,960

  4. Rs. 11,960

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

CI = 91000 * (1.2^2 - 1) = 91000 * 0.44 = 40040. SI = 91000 * (100/7)/100 * 4 = 91000 * (1/7) * 4 = 52000. The difference is 52000 - 40040 = 11960.

Keep practicing — related questions