Question 2Suppose a certain sum doubles in 2 yr at rThen-a r - Rb R - rc R - rd Cannot be determined

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard VIII

Mathematics

Compound Interest

Question 2Sup...

Question

Question 2

Suppose a certain sum doubles in 2 yr at r% rate of simple interest per annum and R% rate of interest per annum compounded annually.
Then,
(a) r < R
(b) R < r
(c) R = r
(d) Cannot be determined

Open in App

Solution

If the total amount received after 2 yr is same for both simple interest and compound interest on same principal, then the rate of simple interest is greater than the rate of compound interest.
i.e. R < r
Hence, option (b) is correct.

Suggest Corrections

Similar questions

Suppose a certain sum doubles in $2$ year at $r %$ rate of simple interest per annum and $R %$ rate of interest per annum compounded annually.

Then,
(a) $r < R$
(b) $R < r$
(c) $R = r$
(d) Cannot be determined

Q. A sum of

R s . 1, 200

becomes

R s . 1, 323

2

years at compound interest compounded annually. Find the interest rate per annum.

A and B borrowed Rs. 60000 and Rs. 50,000 respectively for a period of 3 years. A paid simple interest at a rate of $10 %$ per annum while B paid compound interest at the rate of $10 %$ per annum compounded annually. Who paid more and by how much?

Q. The compound interest on a certain sum for

2

years at

10

% per annum is

R s . 525

. The simple interest on the same sum for double the time at half the rate percent per annum is:

Q. The difference between the compound interest on a certain sum at the rate of

5 %

per annum for

2

years compounded annually and simple interest for the same

2

years is Rs.

1000

. What is the principal sum?

Join BYJU'S Learning Program

Explore more

Compound Interest

Standard VIII Mathematics

Join BYJU'S Learning Program

Question 2 Suppose a certain sum doubles in 2 yr at r% rate of simple interest per annum and R% rate of interest per annum compounded annually. Then, (a) r < R (b) R < r (c) R = r (d) Cannot be determined

If the total amount received after 2 yr is same for both simple interest and compound interest on same principal, then the rate of simple interest is greater than the rate of compound interest. i.e. R < r Hence, option (b) is correct.

Question 2

Suppose a certain sum doubles in 2 yr at r% rate of simple interest per annum and R% rate of interest per annum compounded annually.
Then,
(a) r < R
(b) R < r
(c) R = r
(d) Cannot be determined

If the total amount received after 2 yr is same for both simple interest and compound interest on same principal, then the rate of simple interest is greater than the rate of compound interest.
i.e. R < r
Hence, option (b) is correct.