Q. 124.2( 26 Votes )
Let us write by calculating the sum of money, if the difference between compound interest and simple interest for 2 years at the rate of 9% interest per annum is ₹129.60.
Answer :
Let principal = ₹x
∴ Simple interest at 9% for 2 years
= ₹0.18x
At the rate of 9% compound interest per the annum the amount for 2 years
= ₹1.1881x
∴ Compound interest for 2 years = ₹1.18x – x = 0.1881x
By the condition, 0.1881x – 0.18x = 129.60
⇒ 0.0081x = 129.60
∴ x = ₹16000
∴ Principal is ₹16000
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