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

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

### View Video Solution

Create a FREE account and get:

• All Quant Formulas and shortcuts PDF
• 40+ previous papers with solutions PDF
• Top 500 MBA exam Solved Questions for Free

Comments

### Register with

OR

Boost your Prep!