a sum of money is invested for 2 years at the rate of 12 percent per annum compounded annually. If it was invested at simple interest, the interest would be rs 72 less than the compound interest. Find the sum of money.

Asked by zaid12 | 21st Feb, 2020, 12:40: PM

Expert Answer:

Compound space interest
straight A equals straight P open parentheses 1 plus 12 over 100 close parentheses squared
straight I equals straight P open parentheses 1 plus 12 over 100 close parentheses squared minus straight P
Simple space interest
straight I equals fraction numerator straight P cross times 2 cross times 12 over denominator 100 end fraction
Difference equals 72
straight P open parentheses 1 plus 12 over 100 close parentheses squared minus straight P minus fraction numerator straight P cross times 2 cross times 12 over denominator 100 end fraction equals 72
straight P equals 5000 space Rs.

Answered by Arun | 22nd Feb, 2020, 10:21: AM

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