The difference between compound interest and simple interest on a certain sum of money at 10 per ann...........

Quantitative Aptitude ( CCS) Compound Interest

The difference between compound interest and simple interest on a certain sum of money at 10% per annum for 2 years is Rs. 40. The sum is

Rs. 4000

Rs. 3600

Rs. 4200

Rs. 3200

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Explanation:

Rate % = 10%, Time = 2 years
Effective Rate% of CI for 2 years
= 10 + 10 (10 × 10)/100 = 21%
Effective Rate % of SI for 2 years = 10 + 10 = 20%
Difference in Rate % = (21 - 20)% = 1%
According to the question, 1 % of sum = Rs. 40
Sum = Rs. 40/1 × 100 = Rs. 4000