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The Difference Between the Compound Interest and Simple Interest on a Certain Sum for 2 Years at 7.5% per Annum is Rs 360. Find the Sum.

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Question

The difference between the compound interest and simple interest on a certain sum for 2 years at 7.5% per annum is Rs 360. Find the sum.

Sum
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Solution

Let the sum be P . 
Thus, we have: 
CI - SI = 360
\[\left[ P \left( 1 + \frac{R}{100} \right)^n - P \right] - \frac{P \times 7 . 5 \times 2}{100} = 360\]
\[P\left[ \left( 1 + \frac{7 . 5}{100} \right)^2 - 1 \right] - \frac{P \times 7 . 5 \times 2}{100} = 360\]
\[P\left[ 1 . 155625 - 1 \right] - \] 0.15P= 3600.155625P - 0.15P=3600.005625P= 360p=`360/0.005625P` = 64000 
Thus, the required sum is Rs. 64.

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Chapter 14: Compound Interest - Exercise 14.3 [Page 21]

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R.D. Sharma Mathematics [English] Class 8
Chapter 14 Compound Interest
Exercise 14.3 | Q 19 | Page 21

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