Question
In: Finance
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 2 years agoRelated Solutions
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