Interest is charged on a sum of money at the rate of 7.5% per annum. The difference between his compound interest and simple interest for 2 years is ₹180. Find that amount.
Interest is charged on a sum of money at the rate of 7.5% per annum. The difference between his compound interest and simple interest for 2 years is ₹180. Then the principal amount is Rs. 32000
Solution:
Given,
Rate of interest per annum [tex]R=7.5%[/tex]
Difference of C.I and S.I for 2 years [tex]D=rs.180[/tex]
We know that for 2 years, [tex]D=\frac{PR^{2} }{100^{2} }[/tex]
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Verified answer
Interest is charged on a sum of money at the rate of 7.5% per annum. The difference between his compound interest and simple interest for 2 years is ₹180. Then the principal amount is Rs. 32000
Solution:
Given,
We know that for 2 years, [tex]D=\frac{PR^{2} }{100^{2} }[/tex]
⇒[tex]180=\frac{P(7.5^{2}) }{100^{2} }[/tex]
⇒[tex]P=\frac{180X100X100}{7.5X7.5}[/tex]
⇒[tex]P=\frac{1800000}{56.25}[/tex]
⇒[tex]P=32000[/tex]
Hence the principal amount is [tex]Rs.32000[/tex]