Question
Ravi invested ₹P in a compound interest scheme at an
annual interest rate of r% for 1 year. Meanwhile, Kriti invested ₹2P in a simple interest scheme at an annual interest rate of 2r% for 2 years. The ratio of the total amount received by Ravi (principal + interest) to the simple interest earned by Kriti is 3:4. Find the value of r.Solution
Since the compound interest is for one year,
Amount of Ravi = P + r% of P = P(100 + r)/100
SP of Kriti = 2P * 2r * 2/100
[P(100 + r)/100]/[2P * 2r * 2/100] = 3/4
(100 + r)/8r = 3/4
400 + 4r = 24r
400 = 20r
r = 20%
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