Question

Reena borrowed from Kamila certain sum for two years at simple interest Reena lent this to Hamin at the same rate for two years compound interest At the end of two years she received Rs 110 as compound interest but paid Rs 100 as simple interest Find the sum and rate of interest

• A. Rs 250 and 20%
• B. Rs 250 and 25%
• C. Rs 200 and 20%
• D. Rs 200 and 25%

Answer 1

Answer: (A)

Rs 250 and 20%

Simple interest for two years= Rs. 100
$\therefore$Interest per year=Rs.50
By compound interest
Interest for I year=Rs.50
Interest for II year$=Rs.(110-50)=Rs.60$
=50+20% of 50=Rs.60
$\therefore$Rate of interest=20%
Let sum borrowed by Reena be P
$\Rightarrow S.I=\frac{PTR}{100}$
$\Rightarrow 100=\frac{P\times 2\times 20}{100}$
$\Rightarrow P=\frac{100\times 100}{2\times 20}$
$\Rightarrow P=250$
$\therefore$Sum borrowed=Rs.250
Rate of interest=20%