Question
Nikhil invested two amounts, Rs. '2N' and Rs. '3N', at
simple and compound interest rates respectively. The first amount, Rs. '2N', was invested at a simple interest rate of 25% per annum for a period of 2 years. The second amount, Rs. '3N', was invested at a compound interest rate of 20% per annum, also for 2 years. The interest for the compound investment was calculated annually. After the investment period, the difference between the interest earned from these two investment schemes was Rs. 480. Determine the value of 'N'.Solution
Simple interest = Principal X time period in years X rate ÷ 100 = 2N X 2 X 25 ÷ 100 = Rs. 'N' CI = Sum x (1 + Rate/100)t - Sum Or, CI = 3N X (1.2)2 - 3N Or, CI = 3N X (1.44) - 3N Or, CI = 4.32N - 3N So, CI = 1.32N ATQ: 1.32N - N = 480 Or, 0.32N = 480 So, 'N' = 1,500
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