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Amandeep Sheokand

· started a discussion

· 1 Months ago

Simple and compound Interest (Question: 573701.0 )

SI and CI are same for 1 and 2 year, not for 2 and 3 year

Question:
A sum of money at compound interest amounts in two years to \(\unicode{x20B9} \)52920, and in three years to \(\unicode{x20B9} \)55566. Find the original sum.
Options:
A) \(\unicode{x20B9} \)48000
B) \(\unicode{x20B9} \)42000
C) \(\unicode{x20B9} \)40000
D) \(\unicode{x20B9} \)45000
Solution:

Ans: (a) Difference in amounts = 55566-52920= \(\unicode{x20B9} \)2646

Now, we see that \(\unicode{x20B9} \)2646 is the interest on Rs 52920 in one year (it is either simple or compound interest because both are the same for a year)

Hence, rate of interest = \(\cfrac{2646×100}{52920}= 5\%\)

Now, for the original sum,

52920 = x \(\left ( 1+\cfrac{5}{100} \right )^2\)  

Or 52920 = x \(\left ( \cfrac{21}{20} \right )^2\)

\(∴ x = \cfrac{52920×20×20}{21×21}= \unicode{x20B9} 48000\)

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