Question
An amount of Rs. ‘P’ was invested at an interest
rate of ‘R%’ per annum, compounded annually. After 2 years, the compound interest earned was Rs. 2700 and the simple interest earned was Rs. 2400. What is the value of ‘P’?Solution
ATQ,
Simple interest for 1 year = 2400 ÷ 2 = Rs. 1200 Difference between compound interest and simple interest after 2 years = 2700 – 2400 = Rs. 300 So, R = (300 ÷ 1200) × 100 = 25% Now, P = 1200 ÷ 0.25 = Rs. 4800
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