Question : There is a 40% increase in an amount in 8 years at simple interest. What will be the compound interest (in Rs.) of Rs. 30,000 after 2 years at the same rate?
Option 1: 6150
Option 2: 7687.50
Option 3: 4612.50
Option 4: 3075
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
Correct Answer: 3075
Solution :
Given: Simple interest on amount $P$ after 8 years = 40% of $P$
Term for simple interest, $n_1$ = 8 years
Sum for compound interest, $P$ = Rs. 30000
Term for compound interest, $n_2$ = 2 years
Simple interest after $ n_1$ years = $\frac{Pn_1R}{100}$
So, 40% of $P = \frac{P×8×R}{100}$
⇒ $R$ = 5%
So, Rate $R$ for Compound Interest = 5%
When compounded annually, Compound Interest after $n$ years = $P[(1+\frac{R}{100})^{n_2}-1]$
= $30000[(1+\frac{5}{100})^{2}–1]$
= Rs. 3075
Hence, the correct answer is 3075.
Related Questions
Know More about
Staff Selection Commission Combined High ...
Application | Eligibility | Admit Card | Answer Key | Preparation Tips | Result | Cutoff
Get Updates BrochureYour Staff Selection Commission Combined Higher Secondary Level Exam brochure has been successfully mailed to your registered email id “”.