Interest Actual Paper in CMAT 2023 Slot - 1

Q1. The simple interest accrued on a sum of certain principal in 8 years at the rate of 13% per year is ₹6500. What would be the compound interest accrued on that principal at the rate of 8% per year in 2 years?
A ₹1040
B ₹1020
C ₹1060
D ₹1200

EXPLANATION

Answer: A

It is given P x 8 x 19 / 100 = 6500

P = Rs 6250

Amount after 2 years = 6250 (1 + 8 / 100)² = 6250 x 108/100 x 108/100 = 7290

Compound interest = 7290 - 6250 = Rs 1040
The answer is option A.