Question
Rs. 28000 invested for 2 years in a scheme offering
compound interest (compounded annually) of 15% p.a. gives an interest that is Rs. 40 less than the interest received on investing Rs. Y for a year at simple interest of 40% p.a.. Find the value of ‘Y’.Solution
Interest returned on investing Rs. 28000 = 28000(1 + 15/100)2 – 28000 = 28000(115/100)2 – 28000 = 28000(23/20)2 – 28000 = 28000{232/202)- 1} = 28000{529/400)- 1} = 28000(529 - 400)/400 = Rs. 9030 So, interest returned on investing Rs. Y for 1 year at simple interest of 40% p.a. = 9030 + 40 = Rs. 9070 Or, Y × (40/100) = 9070 Or, Y = 9070 × (100/40) Or, Y = 22675
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