Question : On a certain sum of money lent out at 16% per annum, the difference between the compound interest for 1 year, payable half-yearly, and the simple interest for 1 year is Rs. 60. The sum is:
Option 1: Rs. 937.5
Option 2: Rs. 9,000
Option 3: Rs. 9,365
Option 4: Rs. 9,375
Correct Answer: Rs. 9,375
Solution : Given: Rate = 16% Time = 1 year Difference between the compound interest for 1 year, payable half-yearly, and the simple interest for 1 year = Rs. 60 We know that, Compound interest = $\text{Principal}×(1+\frac{\text{Rate}}{2×100})^{\text{2×Time}}-\text{Principal}$ ⇒ Compound interest = $\text{Principal}×((1+\frac{8}{2×100})^{\text{2×1}}-1)$ = $\text{Principal}×(1.1664-1)$ = $0.1664 × \text{Principal}$ ................................................(1) Now, Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$ = $\frac{\text{Principal × 16 × 1}}{100}$ = $0.16 × \text{Principal}$ ................................................(2) From equation (1) and (2), we get: $0.1664 × \text{Principal} - 0.16 × \text{Principal} = 60$ ⇒ $0.0064 × \text{Principal} = 60$ $\therefore\text{Principal} = \frac{60}{0.0064}= 9375$ Hence, the correct answer is Rs. 9,375.
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Question : On a certain sum of money lent out at 16% p.a. the difference between the compound interest between 1 year, payable half-yearly and the simple interest for 1 year is Rs. 56. The sum is:
Option 1: Rs. 1080
Option 2: Rs. 7805
Option 3: Rs. 8750
Option 4: Rs. 5780
Question : On a certain sum, the difference between compound interest and simple interest at 10% per annum for 2 years is Rs.250. The sum is _________.
Option 1: Rs.25,450
Option 2: Rs.26,550
Option 3: Rs.25,000
Option 4: Rs.26,000
Question : Find the difference between the simple interest and the compound interest payable annually on a sum of Rs. 6,500 at 7% per annum for 3 years. (Correct to two decimal places.)
Option 1: Rs. 94.34
Option 2: Rs. 97.78
Option 3: Rs. 98.73
Option 4: Rs. 95.67
Question : Find the difference between compound interest and simple interest when a sum of Rs. 15,625 is invested for 3 years at 4% per annum.
Option 1: Rs. 76
Option 2: Rs. 96
Option 3: Rs. 56
Option 4: Rs. 86
Question : On a certain sum of money, the simple interest for 2 years is Rs. 350 at the rate of 4% per annum. It was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned?
Option 1: Rs. 3.50
Option 2: Rs. 7
Option 3: Rs. 14
Option 4: Rs. 35
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