Question
The difference between compound interest and simple
interest at rate of 28% per annum for 2 years is Rs. 392. 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 + 28/100)2 – 1] – P × 28% × 2 = 392 P × 0.6384 – P × 0.0784 = 392 P × 0.0784 = 392 P = 392 ÷ 0.0784 = Rs. 5000 Therefore, required interest = 5000 × 10% × 2 = Rs. 1000
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