Multiple choice

The simple interest (S.I.) on a sum of Rs. 16000 is Rs. 3840 in 3 years. What will be the compound interest (C.I.) on Rs. 18000 at the same rate of interest in 2 years?

  1. Rs. 3144.5

  2. Rs. 3095.2

  3. Rs. 2756.4

  4. Rs. 2995.2

  5. Rs. 2332.8
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest on 16000 for 3 years is 3840, so the rate is 3840 / (16000 * 3) = 0.08 or 8%. Compound interest on 18000 at 8% for 2 years is 18000 * ((1.08)^2 - 1) = 18000 * 0.1664 = 2995.2.

AI explanation

The rate is found by dividing 3840 by the product of 16000 and 3, yielding 0.08 or 8%. Using the compound interest amount formula for 18000 over 2 years at 8%, the amount is 18000 times 1.08 squared, which equals 20995.2. Subtracting the principal gives 20995.2 minus 18000, resulting in Rs. 2995.2.

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