Question

The simple interest and compound interest on certain amount for 2years is rs 600 and 660 respectively.Find rate of interest

Answer 1

Answer:

If an amount is kept at SI, it earns an interest of Rs.600 in the first two years but when kept at CI, it earns an interest of Rs 660 in the same period. Find the rate of interest and the Principal.

The solution given is:- Rs 60 is earned extra is the interest of first year. And since interest earned in all years is constant hence, interest earned is 300. Rate of interest= 60/300∗100=20 At 20% interest of first year is Rs. 300. Thus, the principal is 300∗100/20=1500