Question

10. Find the sum of money on which the difference between compound interest and simple interest at the
rate of 10% per annum for 2 years is 500​

Answer 1

Answer:

Let the sum be Rs.100

Computation of compound interest:

Prinicpal =Rs.100

R=10% per annum and n=2 years.

Amount=Rs.

⎣

⎢

⎡

100×(1+

100

10

)

2

⎦

⎥

⎤

=Rs.

⎣

⎢

⎡

100×(

2

11

)

2

⎦

⎥

⎤

=Rs.121

Computation of simple interest:

Prinicpal =Rs.100

R=10% and Time =2 years.

∴S.I.=Rs.(

100

100×10×2

)=Rs.20

Thus, difference in C.I. and S.I.=Rs.(21−20)=Re.1

Now, if difference between C.I and S.I. is Re.1, Then Sum =Rs.100

If difference between C.I. and S.I. is Rs.500, Then Sum =Rs.(100×500)=Rs.50000