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10 Jul 2017, 02:42
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Two equal sums of money are invested, one under simple interest and the other under compound interest, both at the same rate of interest per annum. What is the rate of interest?
(1) The difference between the simple interest and compound interest after 2 years is $110.
(2) If the rate of interest were squared, the interest accumulated under simple interest after 2 years would have become 4 times its actual value.
(1) The difference between the simple interest and compound interest after 2 years is $110.
(2) If the rate of interest were squared, the interest accumulated under simple interest after 2 years would have become 4 times its actual value.
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11 Jul 2017, 06:54
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Bunuel
Two equal sums of money are invested, one under simple interest and the other under compound interest, both at the same rate of interest per annum. What is the rate of interest?
(1) The difference between the simple interest and compound interest after 2 years is $110.
(2) If the rate of interest were squared, the interest accumulated under simple interest after 2 years would have become 4 times its actual value.
(1) The difference between the simple interest and compound interest after 2 years is $110.
(2) If the rate of interest were squared, the interest accumulated under simple interest after 2 years would have become 4 times its actual value.
Dear Bunuel,
Can you please review the wording of Statement 1? It is nonsensical that difference between interest rates is an amount of money ($). I think It should difference between amounts invested with its correspondent rates.
Thanks
11 Jul 2017, 07:02
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stat1 :simple interest after 2 years = 2I...,,,,,,(1)
compound interest after 2 years = I + (I + r% of I),,,,,,,(2)
(2) - (1) difference is rt/100 = 110...not suff
stat 2: direct substitution in the formula Simple interes = PRT /100 gives u the answer
ans B
compound interest after 2 years = I + (I + r% of I),,,,,,,(2)
(2) - (1) difference is rt/100 = 110...not suff
stat 2: direct substitution in the formula Simple interes = PRT /100 gives u the answer
ans B
