Question

If simple interest and compound interest of a certain sum of money for two years are ₹8400 and ₹8652, then calculate the sum of money and the rate of interest.​

Answer 1

Answer:

imagine that 'P' is principal(the sum of money) and 'r' is rate of interest

then

P×r×2/100=8400

so, P×r=420000

in second situation

P(1+r/100) square-P=8652

or, P(1+r/50+r×r/10000-1)=8652

or,Pr/50+Pr×r/10000=8652

or,420000/50+420000r/10000=8652

or,8400+4200r/100=8652

or,8400+42r=8652

or,42r=252

or,r=6

so,P×6=420000

or,P=70000

now proved that the value of 'P' is 70000 and value of 'r' is 6.