Practicing Success
If the difference between the compound interest and simple interest at 17% on a sum of money for 2 years (compounded annually) is ₹433.50, then , the compound interest (in ₹) is: |
2,735.50 2,500 5,100 5,533.50 |
5,533.50 |
Simple interest of 2 years = 17% + 17% = 34% Compound interest of 2 years = 17 + 17 + \(\frac{17×17}{100}\) = 34 + 2.89 = 36.89% Difference b/w CI and SI = 36.89 - 34 = 2.89% ATQ, 2.89% = 433.50 1% = \(\frac{433.50}{2.89 }\) = 150 Compound Interest = 36.89% = 36.89 × 150 = 5533.5 |