Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

The difference between simple interest and compound interest of a certain sum of money at 10% per annum for 1 year is Rs.1800. Then the sum is: (Interest being compound half yearly)

Options:

Rs.740000

Rs.780000

Rs.750000

Rs.720000

Correct Answer:

Rs.720000

Explanation:

Simple interest ⇒ 10% 

Compounded interest ⇒ 5% + 5% + \(\frac{5 × 5}{100}\)% ⇒ 10.25% 

Diff. b/w C.I & S.I. for two years ⇒ 10.25% - 10% ⇒ 0.25%

ATQ,

0.25% of P = 1800

1% of P = \(\frac{1800}{.25}\)

100% of P = \(\frac{1800}{25}\) × 10000

Principal = Rs.720000