Discussion of Question with ID = 036 under Compound-Interest

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Question

An amount P is invested for 1 year @2% p.a. The simple interest is Rs. 3000. What would be the compound interest on the same amount, at the same rate and for the same time, compounded annually?

A

Rs. 3000.

B

Rs. 3100.

C

Rs. 2900.

D

Rs. 3200.

Soln.
Ans: a

The compound interest and simple interest are exactly same for a period of 1 year if P and r are always same.

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