Question

The difference between compound interest compounded annually at 10%
per annum and simple interest at 12% per annum on a certain sum of
money for two years is Rs 2,640. Find the sum
1) Rs 84,000 2) Rs 88,000 3) Rs 92.000 4) Rs 96.000​

Answer 1

Answer:

2) Rs 88,000

Step-by-step explanation:

• Simple interest: x+2*12%= x*1.24
• Compound interest: x*(1+0.1)²= x*1.21

• 1.24x-1.21x= Rs 2640
• 0.03x=Rs 2640
• x= Rs 2640/0.03= Rs 88000

Correct option:  2) Rs 88,000