Question
The difference between compound interest and simple
interest at rate of 24% per annum for 2 years is Rs. 288. 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 + 24/100)2 – 1] – P × 24% × 2 = 288 P × 0.5376 – P × 0.48 = 288 P × 0.0576 = 288 P = 288 ÷ 0.0576 = Rs. 5000 Therefore, required interest = 5000 × 10% × 2 = Rs. 1000
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