Question 110

The difference between the interest earned on the same amount invested under compound interest and simple interest at same rate of interest for 2 years is Rs.234. If the rate of interest is 6% p.a. then find the amount invested. (in Rs.)

Solution

Rate of interest = 6% and time period = 2 years

Let principal sum = Rs. $$P$$

Also, difference between compound interest and simple interest for 2 years = $$P(\frac{r}{100})^2$$

=> $$P(\frac{6}{100})^2=234$$

=> $$P=234\times\frac{10000}{36}$$

=> $$P=Rs.$$ $$65,000$$

=> Ans - (D)

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