Question
The difference between the interests received when Rs. x
is invested in scheme ‘A’ at simple interest for 3 years and at compound interest, compounded annually for 3 years in scheme ‘B’ is Rs. 2560. The rate of interest p.a. for both the schemes is 20%. Find the value of ‘x’.Solution
Difference = 3PR 2 /100 2 Â + P(R/100) 3
According to the question,
2560 = x{(3 × 20 2 )/100 2  + (20/100) 3 }
Or. 2560 = 0.128x
Or, x = 20000
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