A man invested Rs. X and Rs. 2X at 15% simple interest and at 8% compound…

2022

A man invested Rs. X and Rs. 2X at 15% simple interest and at 8% compound interest (compounding annually) for two years respectively. If difference between simple interest and compound interest received after two years is Rs.820, then find the value of X.

  1. A.

    Rs.25000

  2. B.

    Rs.30600

  3. C.

    Rs.28600

  4. D.

    Rs.22200

  5. E.

    Rs.26200

Attempted by 4 students.

Show answer & explanation

Correct answer: A

Simple interest on X at 15% for 2 years is 0.30X. Compound interest on 2X at 8% for 2 years is 2X(1.08^2 - 1) = 0.3328X. Difference = 0.0328X = 820, so X = 25,000.

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