InterviewSolution
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The compound interest on a sum of money is three times the simple interest on the same amount of money when it is invested at the rate of 10%interest for a period of 2 years. Find the sum of money being invested upon?1). Rs. 13312). Rs. 15343). Rs. 34314). Cannot be determined |
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Answer» We know the FORMULA for COMPOUND interest $(CI = \LEFT[ {\left( {P{{\left\{ {1 + \frac{r}{{100}}} \right\}}^t} - 1} \right)} \right])$ Where CI = compound interest; P = principal; R = rate of interest and t = time period We know the formula for simple interest ⇒ SI = (p × r × t)/100 Where SI = Simple interest; P = principal; R = rate of interest and t = time period Given that Compound interest = 3 × Simple Interest $(\Rightarrow P \times r \times t = 3 \times \left[ {\left( {P{{\left\{ {1 + \frac{r}{{100}}} \right\}}^t} - 1} \right)} \right])$ In the above equation, P gets cancelled on both the sides of the equation ∴ VALUE of P cannot be DETERMINED |
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