Question

The simple interest on a certain sum of money at 4% p.a. for 4 years is Rs. 67 more than simple interest on the same sum for 3 years at 5% p.a. Find the sum of money.
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Answer 1

Answer:

For ,

N=4years

R=4 % 

We have S.I.=100PNR=100P×4×4=10016P=0.16P

And on interest being compounded for 3  years and R=5 %, Amount=P(1+100R)N=P(1+1005)3=P×(1.053)=1.157625P

So, C.I.=A−P=1.157625P−P=0.157625P

Given, S.I.−C.I=Rs228

=>0.16P−0.157625P=Rs228

=>0.002375P=Rs228

=>P=Rs96,000