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Time value of money

If the difference between interest received by two persons A and B on the same sum of 1500 for 3 years Rs. 18. Then what is the difference between the two rates of interest

Mirjavalli Shaik

CA Foundation

480

02-Jan-20

213

Assume the difference in rate is X% 1500 * X/100 * 3 = 18 Solve the above equation you will get the answer.

Suraj Lakhotia

02-Jan-20

Got 3.6

Mirjavalli Shaik

CA Foundation

480

02-Jan-20

To obtain difference value we need another value , how to calculate it

Mirjavalli Shaik

CA Foundation

480

02-Jan-20

Sir , watching lectures and solving textbook problems feeling not difficulty , when it comes to practice previous papers i felt hard

Mirjavalli Shaik

CA Foundation

480

02-Jan-20

1500*X/100*3 = 18 X=18/45 = 0.4 Another approach is to assume interest rates as X% and Y% 1500*X%*3-1500*Y%*3=18. From this equation, you can find out X-Y. I also saw that you have not gone through additional practice problems on website. Pls go through that as well.

Suraj Lakhotia