Simple interest on a certain sum of money for 3 years at 14% per annum is half the compound interest on Rs 10000 for 2 years at 10% per annum. The sum placed on simple interest is:
- ARs 5000
- BRs 1250
- CRs 2000
- DRs 2500
Solution & Step-by-step Explanation
First, let us find the compound interest (CI) on Rs 10000 for 2 years at 10% per annum.
Amount (A)=P(1+
100
R
)
t
A=10000(1+
100
10
)
2
=10000×(
10
11
)
2
A=10000×
100
121
=12100
CI=A−P=12100−10000=Rs 2100
According to the question, the simple interest (SI) is half of this compound interest:
SI=
2
1
×2100=Rs 1050
Now, we calculate the principal sum (P
SI
) placed under simple interest for T=3 years at R=14% per annum:
SI=
100
P
SI
×R×T
1050=
100
P
SI
×14×3
1050=
100
42⋅P
SI
P
SI
=
42
1050×100
=
42
105000
=2500
The sum placed on simple interest is Rs 2500.
Amount (A)=P(1+
100
R
)
t
A=10000(1+
100
10
)
2
=10000×(
10
11
)
2
A=10000×
100
121
=12100
CI=A−P=12100−10000=Rs 2100
According to the question, the simple interest (SI) is half of this compound interest:
SI=
2
1
×2100=Rs 1050
Now, we calculate the principal sum (P
SI
) placed under simple interest for T=3 years at R=14% per annum:
SI=
100
P
SI
×R×T
1050=
100
P
SI
×14×3
1050=
100
42⋅P
SI
P
SI
=
42
1050×100
=
42
105000
=2500
The sum placed on simple interest is Rs 2500.