Question:
A sum of money is accumulating at compound interest at a certain rate of interest. If simple interest instead of compound were reckoned, the interest for the first two years would be diminished by ₹ 20 and that for the first three years, by 61. What is the sum?
A sum of money is accumulating at compound interest at a certain rate of interest. If simple interest instead of compound were reckoned, the interest for the first two years would be diminished by ₹ 20 and that for the first three years, by 61. What is the sum?
Updated On: Sep 23, 2024
- ₹ 7500
- ₹ 7000
- ₹ 8000
- ₹ 6500
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The Correct Option is C
Solution and Explanation
P - sum and r- rate of interest
Simple Interest \(=\frac{prt}{100}\)
Compound interest:
Amount \(=P(1+\frac{r}{100})^n\)
\(p(\frac{r}{100})^2=40\)
\(P(\frac{r}{100})^2\times\frac{(300+r)}{100}=61\)
On Solving, we get
P= 8000 (sum). So the correct option is (C)
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