Multiple choice

The simple interest accured on a sum of certain principle in 8 yrs. at 13%p.a is rs. 6500. What would be the compund interest accured on that principal at the rate of 8% p.a in 2 yrs ? A.1040 rs. B.1260 rs. C.1250 rs. D.None of these E. Can not be determined

  1. D

  2. E

  3. B

  4. A

  5. C
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

From simple interest, P x 13 x 8/100 = 6500, so the principal is 6250 rupees. The compound interest for 2 years at 8% is 6250[(1.08)^2 - 1] = 1040 rupees, corresponding to the encoded answer A.

AI explanation

Using the simple interest formula, the principal is calculated as simple interest multiplied by 100 divided by the product of the rate and time. Substituting the given values gives a principal of 6500 multiplied by 100 divided by the product of 13 and 8, which equals 6250. Using the compound interest formula for this principal at 8 percent for two years gives an interest of 6250 multiplied by 0.1664, which equals 1040. The compound interest is Rs. 1040.

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