Question

The difference on a certain amount on 5% rate between compound and simple interest is Rs 6 for two years. What is the amount ?
1. Rs. 2,000
2. Rs. 2,200
3. Rs. 2,400
4. Rs. 2,600

Answer 1

Correct Answer - Option 3 : Rs. 2,400

Given: 

CI- SI = Rs. 6 

Time = 2 years 

Rate = 5%

Formula used:

CI- SI = P(R)²/(100)²

Calculation:

6 = P(5)²/100²

⇒ P = 6 × 10000/25

⇒ P = 2400 

∴ The amount is Rs. 2400.