The difference between the compound Interest and simple interest :

The difference between the compound Interest and simple interest on a certain sum at 10% per annum for 2 years is Rs. 631. Determine the sum:

  1. Rs. 70000
  2. Rs. 61000
  3. Rs. 62000
  4. Rs. 63100
Anurag Mishra Professor Asked on 31st January 2016 in Maths.
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  • 1 Answer(s)

    Answer: (4) Rs. 63100

    Solution:-
    Let the sum be Rs. X

    The difference between the compound interest and simple interest on a certain sum at 10% per annum for 2 years is Rs. 631.
    Then, { X (1+10/100)^2 – X} – X x 10 x 2/100 = 631
    {X x 11 x 11/10 x 10 – X} – X/5 = 631
    (121 X – 100 X)/100 – X/5 = 631
    (21 X – 20 X)/100 = 631
    X = 631 x 100
    X = 63100

    Then, sum will be Rs. 631000.

    Hence, the correct answer is option (4) Rs. 63100.

    Anurag Mishra Professor Answered on 31st January 2016.
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