Question 118

The difference between the compound interest and the interest rate for a certain amount invested in 2 years is Rs. Is 198. If the interest rate is 6% per annum, find out the amount invested.

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 = $$P(\frac{r}{100})^2$$

=> $$P(\frac{6}{100})^2=198$$

=> $$P=198\times\frac{10000}{36}$$

=> $$P=Rs.$$ $$55,000$$

=> Ans - (D)

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