1.

Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is1). Rs. 15502). Rs. 16503). Rs. 17504). Rs. 2000

Answer»

For calculating compound INTEREST, Principal = Rs. 4000, Time period = 2 years, Let the rate = 10 %

We know, AMOUNT = Principal (1 + Rate/100)n

And compound interest = Amount - Principal = 4000 (1 + 10/100)2 - 4000 = Rs. 840

It is GIVEN that simple interest is half the compound interest

We know, Simple interest = (P × R × T)/100

Simple interest = Rs. 420, rate = 8%, time = 3 years

⇒ 420 = (P × 8 × 3)/100

⇒ P = Rs. 1750

∴ The sum PLACED on simple interest is Rs. 1750


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