Veer invested Rs.10000 at simple interest for 2 years at the rate of R% and…
2018
Veer invested Rs.10000 at simple interest for 2 years at the rate of R% and gets an interest of Rs1400. He invested total amount (Principle + Interest) in a scheme, which offered compound interest at the rate of (R%+x%) for two years.
→ What are the possible integral values of ‘x%’ so that obtained compound interest is less than Rs.2400
(i) 1%
(ii) 2%
(iii) 3%
(iv) 4%
(v) 5%
Answer: C. Only (i), (ii) and (iii) — Simple interest gives 1400 = 10000 x R x 2 / 100, so R = 7%. The invested amount after simple interest is Rs. 11400. For compound interest less than Rs. 2400…
- A.
Only (i)
- B.
Only (i), (ii)
- C.
Only (i), (ii) and (iii)
- D.
Only (i), (ii), (iii) and (iv)
- E.
All of the above
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Correct answer: C
Simple interest gives 1400 = 10000 x R x 2 / 100, so R = 7%. The invested amount after simple interest is Rs. 11400.
For compound interest less than Rs. 2400 over two years, the rate (7 + x)% must be less than about 10.02%.
Therefore integral x values 1%, 2%, and 3% are possible, while 4% and 5% are not.