Puneeta borrowed from reena certain sum for two years at simple interest. Puneeta lent this sum to venu at the same rate for two years compound interest. At the end of two years she received ` 110 as compound interest but paid ` 100 as simple interest. Find the sum and rate of interest:
Answers
Answered by
6
Answer:
Sum is 250 and Rate of interest is 20%
Explanation:
Simple interest for 2 years amounts to 100
So, interest for 1 year is 100 / 2 equals to 50
With Compound interest
Interest for 1st year = 50 (will be same as Simple Interest)
Interest for 2nd year = Amount - Last year interest
= 110 - 50
= 60
This amount involves 50 interest of last year and this year interest is 10.
So, this 10 comes from this as:
= 20% of 50
= 10
Therefore, the rate of interest is 20%.
We will find sum as:
Let the sum borrowed by Puneeta be P
SI = P× R × T / 100
100 = P× 20% × 2 / 100
10,000 = 40 P
P = 10,000 / 40
P = 250
Sum is 250
Similar questions