Question
The difference between compound interest and simple
interest at rate of 14% per annum for 2 years is Rs. 294. Find the simple interest obtained on same amount for a period of 2 years at rate of 10% per annum.Solution
Let, the amount be Rs. P. P[(1 + 14/100)2 – 1] – P × 14% × 2 = 294 P × 0.2996 – P × 0.28 = 294 P × 0.0196 = 294 P = 294 ÷ 0.0196 = Rs. 15000 Therefore, required interest = 15000 × 10% × 2 = Rs. 3000
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