AFCAT Model Paper 4

Given:
Compound interest for 2 years = Rs. 2050
Simple interest for 3 years = Rs. 3000
Formula Used:
For compound interest
A=P(1+

r

100

)t, Where, P= Principal, r= Rate, t= Time
For simple interest
I=

(P×r×t)

100

, Where I= interest
Calculation:
According to the question
2050=P(1+

R

100

)2−P ----(i)
And, 3000=

P×R×3

100

⇒ PR = 100000 ----(ii)
Dividing (1) by (2), we get

PR

P(1+ R 100 )2−P

=

100000

2050

⇒ 2050R=100000(1+

R2

10000

+

R

50

−1)
⇒ 2050R =10R2 + 2000R
⇒ R = 5%
Substituting in equation (ii) we get,
⇒ P × 5 = 100000
∴ P = Rs. 20000