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AFCAT Model Paper 2

Question : 87 of 100

Marks: +1, -0

Solution:

Given:

Compound Interest on a sum for 2 years at 11% p.a. = Rs.4642

Formulas used:Compound Interest + Principal = Amount

⇒ Amount = Principal

\times \left(1 + \frac{R}{100}\right)^n

Simple Interest = Principal × Rate/100 × Time

Calculation:

4642 + P = P \times \left(1 + \frac{11}{100}\right)^2

⇒

4642 = P \times \frac{111}{100} \times \frac{111}{100} - P

⇒

4642 = P\left(\frac{111}{100} \times \frac{111}{100} - 1\right)

⇒

4642 = P\frac{12321 - 10000}{10000}

⇒

4642 = P \times \frac{2321}{10000}

⇒

P = 4642 \times \frac{10000}{2321}

⇒ P = Rs.20000

∴ Simple Interest $= 20000 \times \frac{11}{100} \times 2 =$ Rs.4400

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