Question

The difference between the compound interest obtained on Rs. ‘a’ at the rate of 10% per annum compounded annually and the simple interest obtained on the same amount at the rate of 9% per annum after 3 years is Rs. 2196. Find the value of ‘a’.

• A. Rs. 30000
• B. Rs. 38000
• C. Rs. 35000
• D. Rs. 36000
• E. Rs. 32000

Answer 1

The correct option is D Rs. 36000

According to the question,

a × [(1.1)³ – 1] – a × 0.09 × 3 = 2196

0.331a – 0.27a = 2196

0.061a = 2196

a = Rs. 36000

So, the value of a is Rs. 36000.

Hence, option D is correct.