the simple interest on a certain of money for 5 years at 10% per annum is rs 196 less than the simple interest on the same sum for 4 years at 16%per annum. find the sum
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48
Interest = PRT
.
Given that interest for 5 years at 10% is Rs 196 less than 4 years at 16%
⇒ P(0.16(4) - P(0.1)(5) = 196
.
Solve for P:
P(0.16(4) - P(0.1)(5) = 196
0.64P - 0.5P = 196
0.14P = 196
P = Rs 1400
.
Answer: The principal amount is Rs 1400
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