Question
Rs. 11000 invested for 2 years in a scheme offering
compound interest (compounded annually) of 15% p.a. gives an interest that is Rs. 30 less than the interest received on investing Rs. Y for a year at simple interest of 30% p.a.. Find the value of โYโ.Solution
Interest returned on investing Rs. 11000 = 11000(1 + 15/100)2ย โ 11000 = 11000(115/100)2ย โ 11000 = 11000(23/20)2ย โ 11000 = 11000{232/202)- 1} = 11000{529/400)- 1} = 11000(529 - 400)/400 = Rs. 3547.5 So, interest returned on investing Rs. Y for 1 year at simple interest of 30% p.a. = 3577.5 + 30 = Rs. 3577.5 Or, Y ร (30/100) = 3577.5 Or, Y = 3577.5 ร (100/30) Or, Y = 11925
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