Rajesh borrowed from Suresh a certain sum for 2 years at simple interest. He lent this sum to Dinesh at the same rate for 2 years compounded interest. At the end of 2 years Ramesh received Rs. 110 as compound interest from Dinesh but paid Rs. 100 as simple interest. Find the sum and rate of interest.
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Explanation:
Let the sum borrowed by rajesh be RS P and rate of interest be R%p.a
be RS P and rate of interest be R%p.aSimple interest (SI)=Rs 400,N=2 years
be RS P and rate of interest be R%p.aSimple interest (SI)=Rs 400,N=2 yearsSI=
be RS P and rate of interest be R%p.aSimple interest (SI)=Rs 400,N=2 yearsSI= 100
be RS P and rate of interest be R%p.aSimple interest (SI)=Rs 400,N=2 yearsSI= 100P×N×R
be RS P and rate of interest be R%p.aSimple interest (SI)=Rs 400,N=2 yearsSI= 100P×N×R
=Rs 4000
=Rs 4000∴ The sum borrowed by rajesh =Rs 4000
=Rs 4000 and rate of interest +5%pa
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