Question 64

The difference between the compound interest and simple interest on ₹ x at 11% per annum for 2 years is ₹ 60.50. What is the value of x?

Solution

Formula for the difference between the compound interest and simple interest for two years

= $$\frac{Pr^2}{100^2}$$

Let the principal be x.

=> 60.5 = $$\frac{x \times 11^2}{100^2}$$

=> x= 5000

So , the answer would be option c)5000.

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