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

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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 $$\frac{5000*40\cdot2}{100}=4000$$

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