Question
The difference between compound interest and simple
interest at rate of 16% per annum for 2 years is Rs. 192. 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 + 16/100)2 – 1] – P × 16% × 2 = 192 P × 0.3456 – P × 0.32 = 192 P × 0.0256 = 192 P = 192 ÷ 0.0256 = Rs. 7500 Therefore, required interest = 7500 × 10% × 2 = Rs. 1500
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