Question

At 8 % rate of interest, if the compound interest is more than simple interest by Rs. 160 for 2 years, then the amount deposited would be?(pls explain in detail)

Answer 1

Answer:

Let us set the original deposit to be x, then we have:

(1.08^2)x - 2(.08x) + x =160

1.1664x - .16x + x =160

1.1664x - 1.16x =160

.0064x=160

x=160/.0064

x=25,000. Being the original deposit.