Question

The compound interest on a sum of money for 2 years is 2100 and the simple interest on the same sum for the same periods is 2000. What is the sum of money?

Answer 1

Answer:

Let the sum of money be x

T=2 years

C.I=2000. , Rate=R

A=P(1+ 100R ) 2

⇒ (x+2100)=x(1+ 100R ) 2

⟶(I)

Now,

S.I=2100

⇒2100= 100x×R×2

⇒ xR=125000

⇒ R= x125000 →(II)

Putting

′ x ′ in eq (I)

( R125000+2000)= R125000

(1+ 100R) 2

⇒( R125000+2000R )= 2100

(1+ 100R) 2

⇒(125000+2700R)=125000(1+ 100R ) 2

⇒1250+27R=1250(1+ 100R2

⇒1250+27R=1250(1+2(0.0R)+(0.0R) 2 )

⇒1250+27R=1250+25R+0.125R 2

⇒0.125R 2−2R=0

⇒R(0.125R−2)=0

⇒R=0 or 0.125R−2=0

But R can't be 0.

∴0.125R−2=0

⇒R= 0.125 =16

∴ R=16 %

Step-by-step explanation:

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