1.

The difference between the compound interest (compounding annually) and simple interest on a sum at the rate of 12% per annum for 2 years is Rs. 360. What is the sum (in Rs.)?1). 270002). 320003). 300004). 25000

Answer»

<P class="MsoNormal" style="margin-left:0in;text-indent:0in;mso-list:none">Let the sum be Rs. ‘P’

Given, R = 12%, Time = 2 YEARS

On a sum of Rs. P at R% per annum in n years,

When compounded annually, CI = P[(1 + R/100)n - 1]

⇒$ CI = P × [(1 + 12/100)2 - 1] = 0.2544P

?$ Simple interest = (PRINCIPAL × Rate × Time)/100

⇒$ SI = (P × 12 × 2)/100 = 0.24P

Now,

Difference = CI - SI = Rs. 360

⇒$ 0.2544P - 0.24P = 360

⇒$ P = 360/0.0144 = Rs. 25000

∴ The sum is Rs. 25000


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