Question
The compound interest on a certain sum for 2 years at
10% per annum is Rs. (x+420). The simple interest on the same sum at the same rate for the same time is Rs. 600. Find the value of x.Solution
Let the principal be P. Simple interest (SI) = P × R × T / 100 = P × 10 × 2 / 100 = 600 P = Rs. 3,000 Compound interest (CI) = P × (1 + R/100)^T - P CI = 3000(1 + 10/100)^2 - 3000 = 3000 × 1.21 - 3000 = 3,630 - 3,000 = Rs. 630 According to the question, CI = Rs. (x + 420) x + 420 = 630 x = 210
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