A person lent out ₹ 625 on simple interest and the same sum on compound interest for 2 yrs at 4 % p. a . Find the ratio of the amounts received by him as interests after 2 yrs
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SI=Prt
CI=P(1+
n
r
)
nt
−P
n=1{Parannum}
CI=P(1+r)
t
−P
CI−SI=P(1+r)
t
−P−Prt
at t=3
CI−SI=P(1+r)
3
−P−3Pr...(1)
at t=2
CI−SI=P(1+r
2
)−P−2Pr...(2)
1÷2
P(1+r)
2
−P−2Pr
P(1+r)
3
−P−3Pr
=
8
25
(1+r)
2
−1−2r
(1−r)
3
−1−3r
=
8
25
1+r
2
+2r−1−2r
1+r
3
+3r+3r
2
−1−3r
=
8
25
r
2
r
3
+3r
2
=
8
25
r+3=
8
25
r=.125
%r=12.5%
=12
2
1
%
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