The compound interest accrued on an amount of ₹22000 at the end of two years is ₹5596.80. What would be the simple interest accrued on the same amount at the same rate in the same period? (Bank P.O., 2008)
Answer
Answer (as printed):
Explanation
Let the rate be R% p.a. Then, $22000\left(1+\frac{R}{100}\right)^{2}=(22000+5596.80)=27596.80$ $\Rightarrow \left(1+\frac{R}{100}\right)^{2}=\frac{275968}{220000}=\left(\frac{28}{25}\right)^{2}$ $\Rightarrow \left(1+\frac{R}{100}\right)=\frac{28}{25} \Rightarrow \frac{R}{100}=\frac{3}{25} \Rightarrow R=12$. ∴ S.I. $=₹\left(\frac{22000 \times 12 \times 2}{100}\right)=₹5280$.
Explanation as extracted from the printed page; notation may be imperfect.