# 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

Two equal sums were lent at 5% and 6% per annum compound interest for 2 years. If the difference in the compound interest was rupees 422, find:
¡) the equal sums
¡¡) compound interest for each sum.

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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