Question

Mahesh borrowed a certain sum for 2 years at simple interest from Bhim Mahesh length is some to Vishnu at the same rate for two years compound interest at the end of 2 years Mahesh received rupees 410 as compound interest but page 400 simple interest find the Saman rate of interest

Answer 1

We know that SI = PTR/100

P = SI * 100/r*t

= 400 * 100 / r * 2

= 20000/R

We know that CI = P(1+r/100)^n - P

= P(1+r/100)^n - 1

410 = 20000/R(1+r/100)^n - 1

410 = 20000/R(10000 + R^2 + 2000R - 10000)/10000

410 = 2/R(R^2 + 200R)

410R = 2(R^2+200R)

2R^2 + 400R - 410R = 0

2R^2 = 10R

Rs =5

P = 20000/5

= 4000.

Sum = 4000, Rate =5%