on a certain amount of money, the difference between the compound interest of a year payable...

on a certain amount of money, the difference between the compound interest of a year payable 4 times per year and the simple interest for a year is AED150. IF THE RATE OF INTEREST IN BOTH CASES IS 5% what is the value of this amount

Solutions

Expert Solution

Simple interest

P = Principal amount, N = No of years, R = Rate of Interest

Compound interest

Amount = Compund Interest + Principal ie, A = C I + P

Compound Interest (CI) = A - P

The difference between the compound interest of a year and the simple interest for a year is 150

That is , Compound interest - Simple interest = 150

Therefore the Value of this Principal Amount =

jeff jeffy answered 1 year ago

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