Question
'P' invested a certain amount at
21% per annum simple interest for 2 years. If he had instead invested the same amount at 20% per annum compound interest, compounded annually for 2 years, the interest earned would have been Rs. 150 more. What was the sum invested by 'P'?Solution
ATQ, Let the sum invested by 'P' be Rs. 'p'. ATQ; {(p × 21 × 2)/100} + 150 = p × (1.2)2 - p (42p + 15000) = 0.44p X 100 Or, 2p = 15000 So, p = 7,500 So, sum invested by 'P' = Rs.7,500
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