Compound Interest Ques 7
Question
A invests Rs. 800 at simple interest at the rate of $12.5 \%$ per annum for 2 years. B invests a certain sum at compound interest at the rate of $10 \%$ per annum for 3 years.$A$ and $B$ receive amount individually in the ratio of $10^{3}: 11^{3}$. Find out the sum invested by $B$ ?
(1) Rs. 1000
(2) Rs. 875
(3) Rs. 1025
(4) Rs. 1200
(5) Rs. 1100
(United Bank of India PGDBF Manipal Exam,07.08.2016)
Show Answer
Answer: (1)
Solution: (1)
S.I. $=\frac{\text { Principal } \times \text { Rate } \times \text { Time }}{100}$
$=\frac{800 \times 12.5 \times 2}{100}=$ Rs. 200
$\therefore$ Amount $=$ Rs. $(800+200)$ $=$ Rs. 1000
$A=P(1+\frac{R}{100})^{T}=P(1+\frac{10}{100})^{3}$ $=P(\frac{11}{10})^{3}=\frac{P \times 1331}{1000}$
$ \therefore \frac{\frac{1000}{P \times 1331}}{1000}=\frac{1000}{1331} $
$ \Rightarrow P=\text { Rs. } 1000$
BETA
