If the difference between the compound interest and simple interest at 17% on a sum of money for 2 years (compounded annually) is ₹433.50, then , the compound interest (in ₹) is:
Answer & explanation
Correct answer: option 4
Simple interest of 2 years = 17% + 17% = 34%
Compound interest of 2 years = 17 + 17 + \(\frac{17×17}{100}\)
= 34 + 2.89
= 36.89%
Difference b/w CI and SI = 36.89 - 34 = 2.89%
ATQ,
2.89% = 433.50
1% = \(\frac{433.50}{2.89 }\) = 150
Compound Interest = 36.89% = 36.89 × 150 = 5533.5