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A sum of money invested at 5% per annum compound interest for 2 years and 146 days amounts to Rs. 9964 more than the simple interest on Rs. 80000 at 10% per annum for 2 years. Find the sum of money.

Mathematics

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Answer

16,000\text{16,000}

Here's a short analysis of the solution:

  • Convert time for Compound Interest (CI): The time period is 2 years and 146 days2 \text{ years and } 146 \text{ days}.

    146 days=146365 years=25 years=0.4 years146 \text{ days} = \frac{146}{365} \text{ years} = \frac{2}{5} \text{ years} = 0.4 \text{ years}

    Total time for CI is 2.4 years2.4 \text{ years}.

  • Calculate Principal (xx) from CI: The CI formula for a fractional period is A=P(1+R100)whole years(1+R×fractional part100)A = P \left(1 + \frac{R}{100}\right)^{\text{whole years}} \left(1 + \frac{R \times \text{fractional part}}{100}\right). Given P=xP=x, R=5%R=5\%, CI=Rs. 9964CI = \text{Rs. } 9964.

    A=x(1+5100)2(1+5100×25)A = x \left(1 + \frac{5}{100}\right)^2 \left(1 + \frac{5}{100} \times \frac{2}{5}\right) A=x(2120)2(1+2100)=x(441400)(5150)=x2249120000A = x \left(\frac{21}{20}\right)^2 \left(1 + \frac{2}{100}\right) = x \left(\frac{441}{400}\right) \left(\frac{51}{50}\right) = x \frac{22491}{20000}

    The interest is CI=A−x=x(2249120000−1)=x(249120000)CI = A - x = x \left(\frac{22491}{20000} - 1\right) = x \left(\frac{2491}{20000}\right). Setting CI=9964CI = 9964:

    x(249120000)=9964  ⟹  x=9964×200002491=4×20000=Rs. 80000x \left(\frac{2491}{20000}\right) = 9964 \implies x = \frac{9964 \times 20000}{2491} = 4 \times 20000 = \text{Rs. } 80000
  • Calculate Simple Interest (SI): Now, calculate SI for P=Rs. 80000P = \text{Rs. } 80000, R=10%R = 10\%, T=2 yearsT = 2 \text{ years}.

    SI=P×R×T100SI = \frac{P \times R \times T}{100} SI=80000×10×2100=800×20=Rs. 16000SI = \frac{80000 \times 10 \times 2}{100} = 800 \times 20 = \text{Rs. } 16000

The final answer is 16,000\text{16,000}.

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