Question
What is the principal sum if the
difference between simple interest (SI) and compound interest (CI), compounded annually, on a certain amount over 2 years at an annual rate of 15% is Rs. 90?Solution
ATQ,
Let, the sum of money is Rs. 100x CI earned at the end of 2 years = [(1.15)2 – 1] × 100x = Rs. 32.25x SI earned at the end of 2 years = 0.15 × 2 × 100x = Rs. 30x So, 32.25x – 30x = 90 Or, 2.25x = 90 Or, x = 40 Desired sum = 40 × 100 = Rs.4000
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