Question

The simple interest on an amount invested at 13% per annum for 9 years is five times of the compound interest on Rs. 18000 for 2 years at 17% per annum. Find the amount invested under simple interest.
1. 29760
2. 25764
3. 26400
4. 28377

Answer 1

Correct Answer - Option 4 : 28377

Given:

The simple interest on an amount invested at 13% per annum for 9 years is five times of the compound interest on Rs. 18000 for 2 years at 17% per annum

Formula Used:

CI = P × (1 + r/100)ⁿ – P, where the rate of interest is r and the amount is invested for n years.

SI = principal × rate × time/100 = Prt/100

Calculation:

S.I. = P × 13 × 9/100 = 117P/100

CI = Rs. {18000 × (1 + 17/100)² – 18000} = Rs. (24640.2 – 18000) = Rs. 6640.2

⇒ 117P/100 = 5 × 6640.2 = 33201

⇒ P = 28377

∴ The invested amount was Rs. 28377