Question 107

The difference between the interest earned on the same amount invested under compound interest andsimple interest at same rate of interest for 2 years is Rs.180. If the rate of interest is 6% p.a. then find the amount invested. (in Rs.)

Solution

Rate of interest = 6% and time period = 2 years

Let principal sum = Rs. $$P$$

Also, difference between compound interest and simple interest for 2 years = $$P(\frac{r}{100})^2$$

=> $$P(\frac{6}{100})^2=180$$

=> $$P=180\times\frac{10000}{36}$$

=> $$P=Rs.$$ $$50,000$$

=> Ans - (A)

Create a FREE account and get:

CAT Quant Questions | CAT Quantitative Ability