The difference between simple and compound interest (compounded-annually) on a sum of money for 2 years at 10% per annum is Rs 65. The sum is_________?

Question

The difference between simple and compound interest (compounded-annually) on a sum of money for 2 years at 10% per annum is Rs 65. The sum is_________?

Answer 1

A. Rs 6500
B. Rs 6565
C. Rs 65065
D. Rs 65650

Explanation:

Let the sum be Rs x.

Then [x × (1 +10/100)² – x] – (x × 10/100 × 2) = 65
=> (x × 11/10 × 11/10 – x) – x/5 = 65
=> (121x/100 – x) – x/5 = 65
=> (21x/100 – x/5) = 65
=> (21x – 20x) = 6500
=> X = 6500

Correct Answer: Rs 6500 ✔

Last Updated: February 07, 2020