The compound interest on a sum of money in two years at the rate of 10% per annum will be Rs 360 more than its simple interest. Find the sum.
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Sum = ₹ 36,000.
Step-by-step explanation:
Let the sum of money be ₹ 100.
then Simple interest (SI) = (100 × 10 × 2) ÷ 100
= ₹20
For compound interest :
A = p {1 + (r/100) }^n
= 100 × { 1 + 10/100 }^2
= 100 × (11/10)^2
= 100 × 121/100
= 121
Therefore, CI. = A - P = 121 - 100
CI. = ₹ 21.
Difference between CI and SI = 21 - 20 = ₹1
When difference is ₹1, Principal = ₹100
When difference is ₹ 360, Principal = ₹x
x/100 = 360/1
=> x = 360 × 100
=> x = ₹36000.
Hence, the sum = ₹ 36,000.
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