Question
A sum of ₹ 2,400 compounded annually at a certain rate
of compound interest in 2 years amounts to ₹ 2,904. What will be the simple interest (in ₹) on the amount at the same time and the interest at the rate of 5% more?Solution
A=2904, P=2400. n=2 years. A=P(1+r/100) ² (2904/2400) =(1+r/100) ² 121/100=(1+r/100) ² r/100= (11/10)-1 r/100=1/10 r=10%. R=10+5=15% SI = (2400×15×2)/100 =720 Rs.
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