Question
What was the total compound interest on a sum after
three years? Statement I - TheĀ interestĀ afterĀ oneĀ yearĀ wasĀ Rs.Ā 200Ā andĀ theĀ sum was Rs. 1000. Statement II - The difference between simple interest and compound interest on a sum of Rs. 2000 at the end of two years was Rs. 20Solution
From statement I: r = (200 Ć 100)/1000 = 20% P = Rs. 1000 , r = 20%, t = 3 years Hence, from statement I we can find CI. From statement II: SI = (2000 Ć r Ć 2)/100 = 40r CI = 2000 [(1+(r/100)2) ā 1] Therefore,Ā CIĀ āĀ SIĀ = 2000 [(1+(r/100)2) ā 1] ā 40r We can find the value of r from the above equation. Hence , CI can be determined.
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