Q. 163.7( 23 Votes )

# If simple interes

Answer :

Let the principal = ₹p and the rate of interest per annum = r%

∴ The interest for 1 year at the rate of simple interest r% per annum

Again the amount at the rate of compound interest r% per annum for 2 years

∴ Compound interest for 2 years

By the condition, … (1)

… (2)

Dividing equation (2) by (1),

⇒ 1/2 r = 102 – 100

⇒ 1/2 r = 2

⇒ r = 2 × 2

∴ r = 4

From (1),

⇒ p = 50 × 25

∴ p = 1250

∴ Principal is ₹1250 and rate of interest is 4%.

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