A certain sum amounts to Rs. 14,641 in 4 years at 10% p.a. when interest is compounded annually. What will be the amount of the same sum (in Rs.) in 3
5
2
years at the same rate at simple interest?
- A13,400
- B14,000
- C13,200
- D13,600
Solution & Step-by-step Explanation
Let the principal sum be P.
For compound interest, the amount A is given by:
A=P(1+
100
R
)
n
14641=P(1+
100
10
)
4
14641=P(
10
11
)
4
14641=P×
10000
14641
⟹P=Rs. 10,000
Now, we need to find the simple interest amount for the same principal P=10000 at R=10% for T=3
5
2
=
5
17
years.
Simple Interest (SI)=
100
P×R×T
=
100
10000×10×
5
17
SI=20×10×17=3400
Amount=P+SI=10000+3400=Rs. 13,400
For compound interest, the amount A is given by:
A=P(1+
100
R
)
n
14641=P(1+
100
10
)
4
14641=P(
10
11
)
4
14641=P×
10000
14641
⟹P=Rs. 10,000
Now, we need to find the simple interest amount for the same principal P=10000 at R=10% for T=3
5
2
=
5
17
years.
Simple Interest (SI)=
100
P×R×T
=
100
10000×10×
5
17
SI=20×10×17=3400
Amount=P+SI=10000+3400=Rs. 13,400