Question

Kamal and Anand each lent the same sum of money for 2 years at 5% at simple interest and compound interest respectively. Anand received Rs. 15 more than Kamal. Find the amount of money lent by each and the interest received.

Answer 1

Let the principal amount be P

Interest received by Kamal is = $S.I=\frac{P\times r\times t}{100}SI=\frac{P\left(5\right)\left(2\right)}{100}SI=\frac{P}{10}=0.1P$

Interest received by Anand is =

$C.I=P\left[\right(1+\frac{r}{100}{)}^n-1]CI=P[(1+\frac{5}{100}{)}^2-1]CI=P\left[\right(1.05{)}^2-1]CI=P[0.1025]=0.1025P$

As the difference between their interests is 15,

we get

CI - SI = 15

Putting values, we get

$0.1025P-0.1P=150.0025P=15\frac{25}{10000}P=15P=6000So,SI=0.1P=6000\left(0.1\right)=600AndCI=600+15=615$

Therefore, Kamal received 600 interest, Anand received 615; both on the principal of 6000