a sum of money is put on compund interest for 2 years at 20%. It would fetch rs. 964 more if the interest is payable yearly. Find

1 thought on “a sum of money is put on compund interest for 2 years at 20%. It would fetch rs. 964 more if the interest is payable yearly. Find”

1. Answer:

   Let the sum be x

   ⇒x(1+

   100

   10

   )

   4

   −x(1+

   100

   20

   )

   2

   =482

   ⇒x(1+

   10

   1

   )

   4

   −x(1+

   10

   2

   )

   2

   =482

   ⇒x(

   10

   11

   )

   4

   −x(

   10

   12

   )

   2

   =482

   ⇒x(1.1)

   4

   −x(1.2)

   2

   =482

   ⇒x(1.4641)−x(1.44)=482

   ⇒x(1.4641−1.44)=482

   ⇒x(0.0241)=482

   ⇒x=

   0.0241

   482

   = Rs.20,000

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