Question

Two customers borrowed the same amount of money. one at compound interest and a
the other at simple interest. If after two years, the interest payable by one was 220 and
the other '200, then what was the principle money lent to each of them?
B) 500
A) 450
D) 575
C) 550​

Answer 1

Answer:

The answer is (B) 500

I hope it will be help you.

Answer 2

Answer:

The sum borrowed is 500 rupees.

Given :

time period  = 2 years

Simple interest = 200 rupees

Compound interest = 220  rupees

to find :

find the principal amount

Step-by-step explanation:

Let the principal amount be P

Let the rate of interest be R

Simple interest after two years  =( P x R xT )/100

2PR/100 = 200

PR/100 = 100

Let R/100 =x

so Px =100..................(1)

Compound interest after two years  = P{(1+r/100)²-1}

P{(1+r/100)²-1} = 220

P{(1+x)²-1}=220..................(2)

Dividing equation 1 and equation 2,

Px/P{(1+x)²-1} = 100/220

x/x²+1+2x-1 = 5/11

11x = 5x²+10x

5x²=x

x=1/5

R/100 = 1/5

R = 20%

Putting x= 1/5 in equation 1

Px = 100

P .( 1/5) = 100

P = 500

Hence the sum borrowed is 500 rupees.