Two equal sums were lent at 5% and 6% per annum compound interest for 2 years. If the difference in the compound interest was rupe

1 thought on “Two equal sums were lent at 5% and 6% per annum compound interest for 2 years. If the difference in the compound interest was rupe”

1. i) The equal sums are 20000 at 5%

   20000 at 6%

   ii) Compound interest for each sum = RS 2050 interest in 5%

   RS 2472 interest in 6%

   To find:

   i) The equal sums at 5% and 6%

   ii) Compound interest for sums at 5% and 6%

   Given data:

   r = 5%, n = 2 years

   r = 6%, n = 2 years

   the difference in compound interest is rupees = RS 422

   Formula:

   Solution:

   r = 5%, n = 2 year

   =

   =

   = 5 + 5 + 0.25

   = 10.25%

   r = 6%, n = 2 years

   =

   =

   = 6 + 6 + 0.36

   = 12.36%

   the difference in compound interest is rupees = RS 422

   that is 12.36% – 10.25% = RS 422

   2.11% = RS 422

   then 100% = ?

   =

   =

   = RS 20000

   P = 20000, N = 2, R = 5

   – 20000

   – 20000

   = 20000 X – 20000

   = 22050 – 20000

   = RS 2050

   P = 20000, N = 2, R = 6

   – 20000

   – 20000

   = 20000 X – 20000

   = 22472 – 20000

   = RS 2472

   Reply