Question 120

If the difference in compound interest and simple interest for a principal amount of 5000 with a rate of 10% is 50. Find the duration for which interests were calculated?

Solution

We should try it by putting up the values given in the option.
As putting up duration = 2 years, Simple Interest = 5000*10*2/100 = 1000
And compound interest will be = 5000(110/100)(110/100) = 1050
Hence answer will be b

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