Question

The compound interest on a certain sum of money invested after 2 years at the rate of 10% per annum is the same as the simple interest on Rs.700 at the same rate after 3 years.
What is 47% of the sum of money initially invested on compound interest?

• A. Rs.1100
• B. Rs.2000
• C. Rs.2500
• D. Rs.1500
• E. Rs.1000

Answer 1

The correct option is E

Rs.1000

$x\left[\right(1+\frac{10}{100}{)}^2-1]$ $=\frac{700\times 10\times 3}{100}$

$\Rightarrow x=Rs.1000$
$\therefore 47\%ofx=Rs.470$