1. Tardigrade
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  4. A sum of ₹ 4000 is split into two parts. One part is lent at simple interest and the other at compound interest, interest being compounded annually. At the end of two years, the total amount of interest earned is ₹ 1720. Find the sum lent at simple interest, if each part is lent at 20 % per annum (in ₹).

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Q. A sum of $₹ 4000$ is split into two parts. One part is lent at simple interest and the other at compound interest, interest being compounded annually. At the end of two years, the total amount of interest earned is $₹ 1720$. Find the sum lent at simple interest, if each part is lent at $20 \%$ per annum (in ₹).

Simple Interest and Compound Interest

Solution:

(i) Let $₹ x$ be lent at simple interest and $₹(4000-x)$ at compound interest.
(ii) $\frac{x \times 20 \times 2}{100}+(4000-x)[(1+\frac{20}{100})^2-1]=1720$, solve for $x$.