Question

The simple interest in 3 years and the compound interest in 2 years on a certain sum at the same rate are rupees 1200 and rupees 832 respectively. Find the rate of interest, the principal and the difference between the CI and SI for 3 years​

Answer 1

Answer:

The simple interest in 3 years and compound interest in 2 years on a certain sum of money at the same rate are Rs.1200 and Rs.832 respectively. The principal is

MEDIUM

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ANSWER

Compound interest for 2 years=Rs.832

Simple interest for 3 years=Rs.1200

As simple interest for each year remains the same.

So, simple interest for 2 years=1200×

3

2

=Rs.800

We know that,

CI

2 year

−SI

2 year

=

200

SI

2 year

×R

=

(100)

2

PR

2

832−800=

200

800×R

32=4×R

R=8%

Again, CI

2 year

−SI

2 year

=

(100)

2

PR

2

32=

100

2

P×(8)

2

32=

10000

P×64

P=

64

32

×10000=5000

Hence, the principal is Rs.5000.