Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

If the difference between compound and simple interest for one and half year is Rs.2450/- at the rate of 12.5% p.a. compounded half yearly, then find principal?

Options:

Rs. 204800

Rs. 245260

Rs. 29854

Rs. 40962

Correct Answer:

Rs. 204800

Explanation:

Interest is compounded half yearly, hence time will be double and rate of interest will be half. 

So, Time = 3 Years, and R = \(\frac{12.5}{2}\) = 6.25%

6.25% = \(\frac{1}{16}\)

Let the principal = 4096

Hence, 49 Units = 2450

       4096 Units = \(\frac{2450}{49}\) × 4096 = 204800