Question
The difference between compound interest and simple
interest at rate of 22% per annum for 2 years is Rs. 484. 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 + 22/100)2 – 1] – P × 22% × 2 = 484 P × 0.4884 – P × 0.44 = 484 P × 0.0484 = 484 P = 484 ÷ 0.0484 = Rs. 10000 Therefore, required interest = 10000 × 10% × 2 = Rs. 2000
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