Question
For 2 years at 12.5% p.a. (compounded yearly), CI
exceeds SI by Rs. 312.5. Find the sum.Solution
Let the sum = Rs. x x(1 + 12.5/100)² – x – x × 12.5% × 2 = 312.5 12.5% = 1/8 ⇒ (1 + 1/8)² = (9/8)² = 81/64 So, 81x/64 – x – x/4 = 312.5 (81x/64 – 64x/64) – 16x/64 = 312.5 x/64 = 312.5 x = Rs. 20000
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