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AleksAgata [21]
3 years ago
7

Kamal and Anand each Lent the same sum of money for 2 years at 5 percent at simple interest and compound interest respectively.

Anand received RS.15 more than Kamal.Find the amount of money lent by each and interest received
Mathematics
1 answer:
Ivenika [448]3 years ago
4 0

Answer:

  • amount lent: ₹6000
  • interest received: Kamal, ₹600; Anand, ₹615.

Step-by-step explanation:

For principal P invested at simple interest rate r, the returned value in t years is ...

  A = P(1 +rt)

If K is Kamal's returned value, the given numbers tell us ...

  K = P(1 +0.05·2) = 1.1P

__

For principal P invested at compound interest rate r, with interest compounded annually for t years, the returned value is ...

  A = P(1 +r)^t

If A is Anand's returned value, the given numbers tell us ...

  A = P(1.05)² = 1.1025P

This latter amount is RS.15 more than the former one, so we have ...

  1.1025P = 1.1P +15

  0.0025P = 15 . . . . . . . . subtract 1.1P

  P = 6000 . . . . . . . . . . . divide by 0.0025 . . . .  the amount lent

Kamal received 1.1P -P = 0.1P = 600 on the investment.

Each lent ₹6000. Kamal received ₹600 in interest; Anand received ₹615 in interest.

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