Question
Scheme A provides an interest rate of R% compounded
annually, while Scheme B offers simple interest at the same rate. Anoop has invested Rs. 1200 in both schemes. After 2 years, the interest earned from Scheme A exceeds that of Scheme B by Rs. 27. Determine the value of R.Solution
Simple Interest for 2 years = 2R% Compound Interest for 2 years = R + R + (R×R)/100 = (2R + R2/100)% According to question, 1200 × (2R + R2/100)% - 1200 × 2R% = 27 1200 × (2R + R2/100 – 2R)% = 27 (1200/100) × (R2/100) = 27 12R2 = 2700 R2 = 2700 ÷ 12 = 225 R = √225 = 15
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