Question

If the difference between the compound interest and simple interest on a certain sum of money for 2 years at 12½ percent per annum is ruppes 150. What is the sum?​

Answer 1

Step-by-step explanation:

Let the amount be x,

then

simple interest for 1.5 years= PRT/100

= x×12×1.5/100

= 18x/100

---(1)

compound interest for 1 year

CI=x(1+r)=x(1+0.12)=1.12x

for neat 6 months

CI= 1.12x(1+0.06)=1.872x

net compound interest

CI=1.872x-x=0.1872x

now given CI-SI=150

0.1872x - 0.18x =150

0.0072x=150

x=

0.0072

150

=20,833.33 RS.

∴ The total amount is 20,833.33 RS.