Question

Compound interest on a sum of money for 2 years compounded annually is Rs 8034. Simple
interest on the same sum for the same period and at the same rate is Rs 7800. Find the sum and
the rate of interest.
Do it properly with formula

Answer 1

Answer :

Sum and rate of interest are 65,000 Rs and 6% respectively.

Step-by-step Explanations :

Given : Compound Interest for 2 year's = 8034 Rs

Simple Interest for 2 year's = 7800 Rs

To find : Sum and rate of interest = ?

S.I. for 2 years = 7800 Rs

S.I. for 1 year = 7800/2 = 3900 Rs

C.I. for first year = 3900 ( Since for first year C.I = S.I )

C.I. for 2 years = 8034 Rs ( Given )

C.I. for the second year = 8034 - 3900 = 4134 Rs

Difference of interests = 4134 - 3900 = 234 Rs

=> 234 Rs is the interest on 3900 for one year.

We know that,.

Rate of interest = S.I × 100 / P × R

Substituting the value in above formula we get,

Rate of interest = 234 × 100 / 3900 × 1.

= 23400/3900

= 6%

Principal = S.I × 100 / R × T

= 3900 × 100 / 6 × 1

= 390000 / 6

= 65,000