ABC26GN4174 · Compound Interest

Subject: General Aptitude · Chapter: Compound Interest · Exam: 2009 · Marks: · Difficulty:

The compound interest accrued on an amount of ₹ 25500 at the end of 3 years is ₹ 8440.50. What would be the simple interest accrued on the same amount at the same rate in the same period?
(a)₹ 4650
(b)₹ 5650
(c)₹ 6650
(d)₹ 7650
(e)None of these
Answer
Answer (as printed): D
Explanation
Let the rate be ₹ $R \%$ p.a. Then, $$\begin{aligned} & 25500\left(1+\frac{R}{100}\right)^{3}=25500+8440.50=33940.50 \\ & \Rightarrow \quad\left(1+\frac{R}{100}\right)^{3}=\frac{33940.50}{25500}=\frac{1331}{1000}=\left(\frac{11}{10}\right)^{3} \\ & \Rightarrow \quad 1+\frac{R}{100}=\frac{11}{10} \Rightarrow \frac{R}{100}=\frac{1}{10} \Rightarrow R=10 \% \\ & \therefore \text { S.I. }=₹\left(\frac{25500 \times 10 \times 3}{100}\right)=₹ 7650 . \end{aligned}$$

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

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