Railway Recruitment Board Mathematics — Question 1713

Question

The difference between the compound interest and simple interest on a sum for 2 years at 10% per annum is ₹50. What is the sum?

  1. 4000
  2. 6000
  3. 5000
  4. 5500

Correct answer

C — 5000

Explanation (English)

For 2 years, CI − SI = P × (R/100)² = P × (0.10)² = 0.01P. So 0.01P = 50 → P = ₹5000.

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