The difference between the compound interest and simple interest on x at a rate of 8.5% per annum for 2 years is ₹260.10. What is the value of x?
- A38,000
- B36,000
- C34,000
- D35,000
Solution & Step-by-step Explanation
The formula for the difference between compound interest (CI) and simple interest (SI) for 2 years is given by:
CI−SI=P(
100
R
)
2
Where:
P=x (Principal amount)
R=8.5% (Rate of interest)
CI−SI=260.10
Substituting the values into the formula:
260.10=x(
100
8.5
)
2
260.10=x(
10000
72.25
)
x=
72.25
260.10×10000
x=
72.25
2601000
=36000
CI−SI=P(
100
R
)
2
Where:
P=x (Principal amount)
R=8.5% (Rate of interest)
CI−SI=260.10
Substituting the values into the formula:
260.10=x(
100
8.5
)
2
260.10=x(
10000
72.25
)
x=
72.25
260.10×10000
x=
72.25
2601000
=36000