Multiple choice

At x% rate Aman receives a Simple Interest of Rs. 320 in 2 years over an investment of Rs. 800. What will be the interest earned when he invests another Rs. 1,000 at compound interest rate of x%?

  1. Rs. 540

  2. Rs. 440

  3. Rs. 360

  4. Rs. 420

  5. Rs. 460
Reveal answer Fill a bubble to check yourself
B Correct answer
AI explanation

Using the Simple Interest formula, the rate x is calculated as (320 * 100) divided by (800 * 2), which equals 20%. Applying this 20% rate to the Compound Interest formula for Rs. 1,000, the interest earned is 1000 * (1 + 0.20) minus 1000, resulting in Rs. 440.

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