2. The difference between simple and compound
interest on a sum of money put for 2 yr at
10% is 40. The sum is
Answers
Answer:
The simple and compounded interest on a certain sum for two years are respectively 40 and 41 find the rate and sum?
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20 Answers

Dharmendra Singh, studied Metallurgy and Material Science (2014)
Answered 1 year ago · Author has 337 answers and 265K answer views
Well there is a very easy way to solve this question but let me first explain the conventional method
Here we can see that in both the cases of SI and CI the principal and rate of interest is same
SI = P*R*2/100 ……(1)
CI = A - P
CI = P*(1+R/100)^2 - P
CI = P*[(1+R/100)^2 - 1]
CI = P*[(10000 + R^2 + 200R -10000)/10000]
CI = P*[(R^2 + 200R)/10000] ……….(2)
Dividing eq.(1) by eq.(2)
40/41 = (2PR /100)/ [P*(R^2 + 200R)/10000]
By solving this R = 5%
By putting this value in equation.(1)
Sum = 400