Question
A person 'P' invested Rs. 'a' in
a simple interest (SI) SIP 'X' for 3 years at an annual interest rate of 10%. They also invested Rs. (a + 100) in a compound interest (CI) SIP 'Y', with a quarterly compounding rate of 40% per annum, for a period of 1 year. The interest earned from SIP 'X' is Rs. 358.2 less than the interest earned from SIP 'Y'. Determine the value of 'a'.Solution
ATQ, Given, CI – SI = 358.2 {(a+100) × [1 + (40/4)/100] - (a+100)} - (a × 10 × 3/100) = 358.2 {(a+100) × 110/100 × 110/100 × 110/100 × 110/100 - (a+100)} - (a × 3 × (10/100)) = 358.2 (a+100) × [121 -100 ]/100 - (30a/100) =358.2 (a+100) × (4641) - 3000a = 3582000 4641a - 3000a + 464100 = 3582000 1641a = 3582000 - 464100 a = (3117900/1641) = 1900
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