Question
The simple interest on a certain sum for 4 years at 10%
per annum is Rs 240 less than the compound interest on the same sum for 2 years at 20% per annum. The sum is?Solution
Simple interest at 10% for 4 years =10*4 = 40%
Compound interest at 20% for 2 years = 20 + 20 + (20*20)/100 = 40 + 4 = 44%
Let the sum be Rs 'P'
44% of P - 40% of P = 240
4% of P = 240
P = (240*100)/4 = 60*100 = Rs 6000
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