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The difference between compound interest and simple interest of a certain sum of money at 20% per annum for 2 years is Rs. 58. Then the sum is
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The difference between compound interest and simple interest of a certain sum of money at 20% per annum for 2 years is Rs. 58. Then the sum is
1). Rs. 1,000
2). Rs. 1,450
3). Rs. 1,550
4). Rs. 2,000
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⇒ Let, Principal be Rs. x simple interest = S.I, compound interest = C.I Rate = 20% and Time (n) = 2 years.
⇒ Principal + C.I = Amount
⇒ Amount = P × [1+ (r/100)] n
⇒ Amount = x × [1 + (20/100)]2
⇒ Amount = (36x/25)
⇒ C.I = (36x/25) - x
⇒ C.I = (11x/25) ------ 1
⇒ S.I = (P × R × T)/100
⇒ S.I = (x × 20 × 2)/100
⇒ S.I = 2x/5 ------ 2
⇒ Given C.I - S.I = 58
⇒ Putting the value of C.I and S.I from 1 and 2 we have
⇒ (11x/25) - (2x/5) = 58
⇒ 11x - 10x = 58 × 25
∴ x = Rs. 1450