Question 47
The compound interest on a certain sum for 2 years at 20% per annum is Rs.880/. The simple interest on the same sum for double the time at half the rate percent per annum is :
Solution
Let the sum = Rs. $$P$$
$$C.I. = P [(1 + \frac{R}{100})^T - 1]$$
=> $$880 = P [(1 + \frac{20}{100})^2 - 1]$$
=> $$880 = P (\frac{36}{25} - 1)$$
=> $$880 = \frac{11P}{25}$$
=> $$P = \frac{880 \times 25}{11} = 2000$$
Now, S.I. on Rs. 2,000 for 4 years at 10%
= $$\frac{2000 \times 10 \times 4}{100}$$
= $$20 \times 40 = 800$$
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