Question
Rs. 13000 invested for 2 years in a scheme offering
compound interest (compounded annually) of 15% p.a. gives an interest that is Rs. 10 less than the interest received on investing Rs. Y for a year at simple interest of 10% p.a.. Find the value of ‘Y’.Solution
Interest returned on investing Rs. 13000 = 13000(1 + 15/100)2 – 13000 = 13000(115/100)2 – 13000 = 13000(23/20)2 – 13000 = 13000{232/202)- 1} = 13000{529/400)- 1} = 13000(529 - 400)/400 = Rs. 4192.5 So, interest returned on investing Rs. Y for 1 year at simple interest of 10% p.a. = 4192.5 + 10 = Rs. 4202.5 Or, Y × (10/100) = 4202.5 Or, Y = 4202.5 × (100/10) Or, Y = 42025
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