Question

At the same rate of interest the simple interest on a sum of money for 3 years is Rs. 1200 and compound interest for 2 years is Rs. 832. Find the rate of interest and the sum of money.​

Answer 1

Answer:

Rs.5000

Step-by-step explanation:

Compound interest for 2 years=Rs.832

Simple interest for 3 years=Rs.1200

As simple interest for each year remains the same.

So, simple interest for 2 years=1200 ×  2/3 =Rs.800

We know that,

CI(2 year ) − SI (2 year)  = {  SI (2 year) ​  × R }/200 =  {(PR)^2}/{(100)^2}

832−800=  {800×R}/200

​32=4×R

R=8%

Again, CI  (2 year)  − SI (2 year)  = {(PR)^2}/{(100)^2}  

32=  {P×(8)^2}/{(100)^2}  

32=  {P×64}/{10000}

P=  {32/64}×10000=5000

Hence, the principal is Rs.5000.