maheshsrini
Can somebody please explain me the lone wolf problem with the solution.
Here you go:
On a loan, evil necromonger charges X% interest in the first year, and Y% interest in the second. If he loaned Rhyme 20,000$ in 2006, how much Rhyme pay by interest in 2008?"
A) X = 10
B) (X + Y + XY/100) = 100
The intent of the question was to say the following: On a deposit of $20,000, interest is paid at a rate of X% in the first year and at Y% in the second year. What is the total interest paid by the end of second year if no money was withdrawn?
On 20,000, you pay X% interest in the first year.
Interest paid in first year = (X/100) * 20,000
Next year, you pay Y% interest on the total amount.
Interest paid in the second year = (Y/100) * [20,000 + (X/100) * 20,000] = (Y/100)*20,000 + (XY/10,000)*20,000
Total interest paid in the two years = (X/100) * 20,000 + (Y/100)*20,000 + (XY/10,000)*20,000
= 200 * (X + Y + XY/100)
All you need to answer the question is the value of '(X + Y + XY/100)' which statement 2 gives you.