Question

The simple interest accrued on an amount of Rs. P at the end of 3 years is Rs.1320. What would be the compound interest accrued on the same amount, if amount on compound interest is Rs.140 more than the amount on S.I.?
1. Rs. 1460
2. Rs. 1500
3. Rs. 1200
4. Rs. 1300
5. Rs. 1320

Answer 1

Correct Answer - Option 1 : Rs. 1460

Given:

Principal = Rs. P, Time = 3 ears, S.I. = Rs.1320

Formula used

Amount = Principal + S.I.

Calculation

Amount = Principal + 1320

C.I. = Amount – Principal

⇒  (P + 1320 +140) – P

⇒  P + 1460 – P

⇒  Rs.1460