Question

The simple interest on a sum of money for 6 years at 5% per annum is ₹160 more than the simple interest on the same sum of 7% per annum for 2 years. Find the invested sum.
Please explain me step by step​

Answer 1

Answer:

= 710.70

Step-by-step explanation:

It is given that

Simple Interest (SI) = 1380

Rate of interest (R) = 12% p.a.

Period(T)= 2 years

(i) We know that

Sum(P) = (SI×100)/(R×T)

Substituting the values

=(1380×100)/(12×2)

= 5750

(ii) Here

Principal (P)= 5750

Rate of interest (R)= 12% p.a or 6% half- yearly

Period (n) = 1 year - 2 half years

So we get

Amount (A)= P(1 + R/100)

Substituting the values

=5750(1+6/100)

2

By further calculation

= 5750×(53/50)

2

So we get

=5750×53/50×53/50

= 6460.70

Here

Compound interest = A- P

Substituting the values

= 6460.70−5750

= 710.70