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Question

Quantitative Aptitude Question on SI & CI

The simple interest and compounded interest (compounded annually) earned on a certain sum of money are 8,000 and 8,400 respectively. If the principal is 40,000 and the rate of interest is 10% per annum, then what is the duration of the investment?

A

1 year

B

1.5 year

C

2 year

D

2.5 year

Answer

2 year

Explanation

Solution

The correct answer is (C): 2 year