Question

What sum of money earned Rs 90 as simple interest in 4 years at the rate of 5%?

Please answer the question with step by step explanation correctly. Wrong answers or unrequired replies will be reported

Answer 1

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