Question 8

The difference between the compound interest and simple interest for two years on a certain sum at a certain rate of interest is Rs. 64. The compound interest for two years is Rs. 704. The principal is

Name: The difference between the compound interest and simple interest for two years on a certain sum at a certain rate of interest is Rs. 64. The compound interest for two years is Rs. 704. The principal is
Uploaded: Jan. 3, 2022, 9:33 a.m.
Duration: 1 min 34 s
Description: The difference between the compound interest and simple interest for two years on a certain sum at a certain rate of interest is Rs. 64. The compound interest for two years is Rs. 704. The principal is

Solution

We have
$$P\left(\frac{R}{100}\right)^2=\ 64$$
And
$$P\left(1+\left(\frac{R}{100}\right)\right)^{^2}-p\ =\ 704$$
Now dividing both we get :
$$\frac{\left(\frac{R}{100}\right)^2}{\left(1+\frac{R}{100}\right)^2-1}\ =\ \frac{1}{11}$$
Solving we get R/100 = 5
Now substituting we get P = 64*25 = 1600