Question 78
The difference between the compound interest and simple interest for the amount Rs. 5,000 in 2 years is Rs. 32. The rate of interest is
Solution
Now, Compound interest accumulated over a period of 2 years = 5000*(1+x)^2 - 5000
Simple interest accumulated = 5000*x*2
The difference between the two is 32
5000*(1+x)^2 - 5000 - 5000*x*2 = 32
Solving we get the value of x = 0.08
Therefore, the correct option is option B.
Get AI Help
Create a FREE account and get:
- Download Maths Shortcuts PDF
- 300+ previous papers with solutions PDF
- 500+ Online Tests for Free
Book Free CAT Mentorship
Get personalized CAT strategy from a 99%iler
500+ students mentored
OTP Verification
Enter the 6-digit code sent to your phone
Booking Summary
Session:Free CAT Mentorship
Phone:
Date:
Time:
Enter OTP
Didn't receive the OTP?
