Question 82
The compound interest on ₹5,000 for 2 years is ₹4,800. Find the simple interest obtained if the principal, interest rate, and time remain the same.
Solution
Compound Interest on₹5,000 for 2 years will be at a rate of R will be $$5000\left(1+\frac{R}{100}\right)^2-5000=4800$$
$$5000\left(1+\frac{R}{100}\right)^2=9800$$
$$\left(1+\frac{R}{100}\right)^2=\frac{9800}{5000}=1.96$$
$$\left(1+\frac{R}{100}\right)=1.4$$
R = 40%
Simple interest = $$\frac{PTR}{100}$$
Simple interest for ₹ 5000 at 40% for 2 years will be $$\frac{5000*40\cdot2}{100}=4000$$
