Question
The difference between compound interest and simple
interest at rate of 12% per annum for 2 years is Rs. 144. Find the simple interest obtained on same amount for a period of 2 years at rate of 10% per annum.Solution
Let, the amount be Rs. P. P[(1 + 12/100)2 – 1] – P × 12% × 2 = 144 P × 0.2544 – P × 0.24 = 144 P × 0.0144 = 144 P = 144 ÷ 0.0144 = Rs. 10000 Therefore, required interest = 10000 × 10% × 2 = Rs. 2000
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