Question
The difference between compound interest and simple
interest at rate of 18% per annum for 2 years is Rs. 486. 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 + 18/100)2 – 1] – P × 18% × 2 = 486 P × 0.3924 – P × 0.36 = 486 P × 0.0324 = 486 P = 486 ÷ 0.0324 = Rs. 15000 Therefore, required interest = 15000 × 10% × 2 = Rs. 3000
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