Question 72

The difference between the compound interest and simple interest on ₹x at 12% per annum for 2 years is ₹43.20. What is the value of x?

Solution

As per the question,

Simple Interest $$\dfrac{x\times R \times T}{100}=\dfrac{x\times12\times 2}{100}=0.24x$$

Compound Interest $$x(1+\dfrac{R}{100})^T-x=x (1+\dfrac{12}{100})^2-x=x\times1.12\times 1.12-x=0.2544x$$

Hence the difference between Simple interest and compound interest $$\Rightarrow 0.2544x-0.24x=0.01x$$

$$\Rightarrow 0.0144x=43.2$$

Hence $$x=\dfrac{43.2 \times 10000}{144}=3000$$Rs.

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