Question

simple interest on a certain sum of money for 2 years at 12% per annum is half of the compound interest on 4000 for 2 years at 10% per annum. Find the sum placed on simple interest​

Answer 1

Principle= Rs 4000

time=2 year

Rate=10%

Compound interest=P×(1+r)

n

−P

I=P{(1+r)

n

−1}

I=4000(1+.10)

2

−1

I=4000(1.21−1)

I=840

AS per question,

Simple interest=840/2=420=PRT/100

S0, I=420=P×0.08×3

I=1750Rs

Answer 1750 Rs