Question

The difference between the compound interest and simple interest on sum of money for 1.5 years at 12% per annum is 150. find the amount

Answer 1

Therefore, interest for the first year is :

150/6 x 100 = 2500

Now, 2500 must be 12% of the principal amount at the beginning of first year.

Therefore, principal at the beginning of first year is :

P = 2500/12 x 100 = 20833.33


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