Solutions
Given:
Let the principal be Rs 'P'
Time = 1 1/2 year = 3/2 years
Rate of interest = 8 %
Concept Used:
Simple interest = (P x T x R)/100
Amount at the rate of compound interest = P(1 + r/100)n
Compound Interest = Amount - Principal
(i) Simple interest = (P x T x R)/100
= (P x 3 x 8)/(2 x 100)
= 3P/25
(ii) Amount at the rate of compound interest = P(1 + r/100)n
= P(1 + 4/100)3
= P(26/25)3
= 17576P/15625
Compound Interest = (17576P/15625) - P
= 1951P/15625
Difference between the compound and simple interests = Rs 228
(1951P/15625) - (3P/25) = 228
(1951P/15625) - (1875P/15625) = 228
(76P/15625) = 228
P = 3 × 15625 = Rs. 46875
Therefore, the sum lent is Rs 46875.