Question
The compound interest received on investing Rs. 4500 for
2 years at compound interest of 20% p.a compounded annually is how much percentage more than the simple interest received on investing Rs. 3300 for 2 years at simple interest of 20% p.a?Solution
Compound interest received on investing Rs. 4500 = 4500 × {1 + (20/100)}2 – 4500 = 4500 × 1.22 – 4500 = Rs. 1980 Simple interest received on investing Rs. 3300 = 3300 × 2 × 10 ÷ 100 = Rs. 1320 So, required percentage = (1980 – 1320) ÷ 1320 × 100 = 50%
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