Question
A certain sum is invested for three years at rate of
interest being 25% and it is invested in both simple interest and compound interest (compounded annually). If the difference between the compound interest and simple interest is Rs 650, then find the sum invested.Solution
Let the sum invested be A; Simple interest in three years: 3 × 25/100 × A => 3A/4 Compound interest in three years: A(1+25/100)3 – A => 61A/64 Difference between compound interest and simple interest= 13A/64 = 650 => A =3200.
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