MAT 2013 Question Paper

Question 75

A sum of money is accumulating at compound interest at a certain rate of interest. If simple interest instead of compound were reckoned, the interest for the first two years would be diminished by ₹ 20 and that for the first three years, by 61. What is the sum?

Solution

P - sum and r- rate of interest

Simple Interest = Prt/100

Compound interest:

Amount = P(1+r/100)^n

P(r/100)^2= 40

P(r/100)^2 ×(300+r)/100 =61

On Solving, we get

P= 8000 (sum)


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