Rs. 6000 was lent at compound interest for 2 years. The rates of interest for the first and second years were 10% per annum and 30% per annum respectively. If the rate of interest each year had been 20% per annum, then the additional amount obtained would have been (in Rs. ).

Options

A. 60
B. 30
C. 90
D. 120

Answer

A

Explanation

Amount realised (in Rs.) `=6000(1+(10)/(100))(1+(30)/(100))`
=6000(1.1)(1.3)=850
If the rate of interest each year was 20% per annum, amount realised (in Rs. )`=6000(1+(20)/(100))^(2)`
`=6000(1.2)^(2)`
`=6000(1.44)=8640`
`therefore` Additional amount realised = Rs. 60