Question
The difference between compound interest and simple
interest at rate of 10% per annum for 2 years is Rs. 120. 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 + 10/100)2 – 1] – P × 10% × 2 = 120 P × 0.21 – P × 0.2 = 120 P × 0.01 = 120 P = 120 ÷ 0.01 = Rs. 12000 Therefore, required interest = 12000 × 10% × 2 = Rs. 2400
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