Question
Calculate the principal amount 'x' for which the simple
interest accrued over 5 years at an annual rate of 24% is equivalent to the compound interest earned in 2 years on an amount of Rs. (x – 50), compounded annually at a rate of 50%. What is the value of 'x'?Solution
According to the question, {(x × 24 × 5)/100} = (x - 50)(1 + 50/100)2 – (x - 50) Or, 1.2x = 1.25x - 62.5 Or, x = 62.5/0.05 = 1250 Hence, option e.
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