Question

A sum is split into two equal parts. One of the parts is lent at simple interest at 4% per annum for one year. The other part is further split into three equal parts. These are lent at compound interests, interests being compounded annually. These are lent at `10%` per annum for 4 years, `20%` per anuum for 2 years and `40%` per annum for 1 year. The difference between the total compound interest and simple interest is Rs 1184.10 Find the sum. in Rs.
A. 3000
B. 4000
C. 5000
D. 6000

Answer 1

Correct Answer - D
i) Let the total sum be Rs `2x`.
ii) `SI = (x xx 4x)/100`.
iii) Total CI `=x/3[(1+10/100)p^(4)-1]+x/3[(1+20/100)^(2)-1]+x/3[(1+40/100)^(1)-1]`.
iv) Use, CI-SI = `1184.10`.