Question
If the Simple Interest and Compound Interest of a sum of
money for two years are Rs. 1800 and Rs. 1935 respectively. Then find out the sum?Solution
Simple Interest for two years = 1800 Simple Interest for 1 year = 900 Difference in Compound Interest and Simple Interest = 1935 – 1800 = 135 Rate of Interest = 135/900× 100 = 15% Principal Amount = (Interest ×100)/(Rate ×time) = (900 ×100)/(15 ×1) = 6000
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