Question

Two equal sums were lent at 5% and 6% per annum compound interest for 2 years. If the difference in the compound interest was rupees 422, find:
¡) the equal sums
¡¡) compound interest for each sum.

Answer 1

i) The equal sums are 20000 at 5%

                                  20000 at 6%

ii) Compound interest for each sum = RS 2050 interest in 5%

                                                             RS 2472 interest in 6%

To find:

i) The equal sums at 5% and 6%

ii) Compound interest for sums at 5% and 6%

Given data:

r = 5%, n = 2 years

r = 6%, n = 2 years

the difference in compound interest is rupees = RS 422

Formula:

Solution:

r = 5%, n = 2 year

=

=

= 5 + 5 + 0.25

= 10.25%

r = 6%, n = 2 years

=

=

= 6 + 6 + 0.36

= 12.36%

the difference in compound interest is rupees = RS 422

that is 12.36% - 10.25% = RS 422

                           2.11% = RS 422

                   then 100% = ?

                                     =

                                     =

                                     = RS 20000

P = 20000, N = 2, R = 5

- 20000

- 20000

= 20000 X  - 20000

= 22050 - 20000

= RS 2050

P = 20000, N = 2, R = 6

  - 20000

  - 20000

 = 20000 X  - 20000

 = 22472 - 20000

 = RS 2472