Simple interest on a certain sum of money for 3 years at 10% per annum is half the compound interest on Rs 6000 for 2 years at 10% per annum. The sum placed on simple interest is:
- ARs 4200
- BRs 2100
- CRs 1050
- DRs 1680
Solution & Step-by-step Explanation
First, let's calculate the compound interest (CI) on Rs 6000 for 2 years at 10% per annum.
The formula for the amount under compound interest is:
A=P(1+
100
R
)
t
A=6000(1+
100
10
)
2
=6000×(
10
11
)
2
A=6000×
100
121
=60×121=Rs 7260
So, the compound interest is:
CI=A−P=7260−6000=Rs 1260
According to the question, the simple interest (SI) on a certain sum is half of this compound interest:
SI=
2
1
×1260=Rs 630
Let the principal sum for the simple interest be P
s
. The time period is t=3 years and the rate of interest is R=10%.
SI=
100
P
s
×R×t
630=
100
P
s
×10×3
630=
100
30P
s
630=
10
3P
s
3P
s
=6300
P
s
=Rs 2100
Thus, the sum placed on simple interest is Rs 2100.
The formula for the amount under compound interest is:
A=P(1+
100
R
)
t
A=6000(1+
100
10
)
2
=6000×(
10
11
)
2
A=6000×
100
121
=60×121=Rs 7260
So, the compound interest is:
CI=A−P=7260−6000=Rs 1260
According to the question, the simple interest (SI) on a certain sum is half of this compound interest:
SI=
2
1
×1260=Rs 630
Let the principal sum for the simple interest be P
s
. The time period is t=3 years and the rate of interest is R=10%.
SI=
100
P
s
×R×t
630=
100
P
s
×10×3
630=
100
30P
s
630=
10
3P
s
3P
s
=6300
P
s
=Rs 2100
Thus, the sum placed on simple interest is Rs 2100.