Question
The compound interest received on investing Rs. 4000 for
2 years at a compound interest of 20% p. a compounded annually is how much percentage more than the simple interest received on investing Rs. 3200 for 2 years at a simple interest of 20% p. a?Solution
solution -Compound interest received on investing Rs.4000 = 4000 × {1 + (20/100)} ² – 4000 = 4000 × 36/25 – 4000= Rs. 1760 Simple interest received on investing Rs.3200  = 3200 × 2 × 20 ÷ 100 = Rs. 1280 so required percentage ATQ-(1760-1280) ×100/1280 = (480×100)/1280 =300/8=37.5%
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