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The Simple Interest and the Compound Interest on a Certain Sum of Money for 2 Years at the Same Rate of Interest Are Rs 8,000 and Rs 8,640 Respectively. Calculate the Rate of Interest and the Sum. - Mathematics

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Question

The simple interest and the compound interest on a certain sum of money for 2 years at the same rate of interest are Rs 8,000 and Rs 8,640 respectively. Calculate the rate of interest and the sum.

Sum
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Solution

The extra interest earned= C.I. - S.I. =Rs (8,640 - 8,000) =Rs 640. 
The interest for the first year = S. I. for 2 years / 2 = Rs `8000/2` = Rs 4000

Therefore, the rate of interest = `640/4000 xx 100 = 16 %`

Now ,

S.I. = `("P" xx "r" xx "t")/100`

`=> "Rs"  8000 = ("P" xx 16 xx 2)/100`

`=> P = Rs  (8000 xx 100)/32`

`=> P = "Rs"  25000`

The rate of interest was 16°/o and the original sum was Rs 25,000. 

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Finding CI from the Relation CI = A – P
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Chapter 1: Compound Interest - Exercise 1.4 [Page 12]

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Frank Mathematics - Part 2 [English] Class 10 ICSE
Chapter 1 Compound Interest
Exercise 1.4 | Q 4 | Page 12
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