The simple interest accrued on an amount of ` 40000 at the end of four years is ` 24000. What would be the… · ABC26GN4125

Subject: General Aptitude · Chapter: Compound Interest · Exam: Bank P.O. 2008

The simple interest accrued on an amount of ` 40000 at the end of four years is ` 24000. What would be the compound interest accrued on the same amount at the same rate in the same period?
Answer
No answer key was printed for this question.
Explanation
Clearly, Principal = ` 40000, Time = 4 years, S.I. = ` 24000.  100 × 24000  So, Rate =   % = 15%.  40000 × 4    15   4  23 23 23 23   279841  Amount = `  40000 ×  1 +   = `  40000 × × × ×  = `   = ` 69960.25.   100    20 20 20 20   4  \ C.I. = ` (69960.25 – 40000) = ` 29960.25.

Explanation as extracted from the printed page; notation may be imperfect.

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