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The simple interest accrued on a sum of certain principal is Rs. 7,200 in six years at the rate of 12 p.a. What would be the compound interest accrued
Question



The simple interest accrued on a sum of certain principal is Rs. 7,200 in six years at the rate of 12 p.a. What would be the compound interest accrued on the same principal at the rate of 5 p.a. in 2 years?

A.

Rs. 1,020

B.

Rs. 1,055 

C.

Rs. 2,050

D.

Rs. 925 

E.

None of these

Correct option is E

Let principle be Rs ’x’

Equivalent rate of interest at rate of 5% p.a. for two years on compound interest


Required compound interest = 10000 ×10.25/100=1025 Rs

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