Question
Asmita invested Rs. 3200 for 2 years at an annual simple
interest rate of r%, while Shreya invested the same sum as Asmita for 2 years at an annual compound interest rate of r%, compounded annually. If the difference between the interest earned by Asmita and Shreya is Rs. 200, calculate the amount received by Asmita.Solution
ATQ, Difference between the simple interest and compound interest for two years is given by PR2/1002 Where P = sum invested and R = rate of interest ATQ, Pr2/1002 = 200 Or, r2 = (200 × 100 × 100)/3200 = 625 Or, r = 25 (Since, rate cannot be negative) Therefore, amount received by ‘Asmita’ = {(3200 × 25 × 2)/100} + 3200 = Rs.4800
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