Arithmetic Ability
Compound Interest

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Q.

At a certain rate of interest the compound interest of 3 years and simple interest of 5 years for certain sum of money is respectively Rs. 1513.2 and Rs. 2400. Find the common rate of interest per annum ?

View Answer

Correct choice: A

Explanation:

Given compound interest for 3 years = Rs. 1513.2 and simple interest for 5 years = Rs. 2400 Now, we know that C.I = [P(1+R/100)n − 1] => 1513.2 = [P(1+R/100)3 − 1] ...........(A) And S.I = PTR/100 => 2400 = P5R/100 ..................(B) By solving (A) & (B), we get R = 5%.
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