If the compound interest on a certain sum for 2 years is Rs 105 and simple interest is Rs 100 then t...........

Quantitative Aptitude ( CCS) Compound Interest

If the compound interest on a certain sum for 2 years is Rs. 105 and simple interest is Rs. 100, then the sum is

Rs. 300

Rs. 500

Rs. 400

None of these

SI for first year = 50

SI for second year = 50

CI for first year = 50

CI for second year = 55

The additional CI of Rs 5 is interest on Rs 50 interest received in first year. So rate of interest is 5/50 x 100 = 10%.

Now, interest of Rs 50 at the end of first year @ 10% pa means principal at the beginning of the year is :

P = 50/10 x 100 = Rs 500

Hence, option 2 is the correct answer.

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