Question

5. The difference between the compound interest and the simple interest on a certain principal for
2 years at the rate of 24/4 per annum is 25. Find the principal.​

Answer 1

Answer:

24.91

Step-by-step explanation:

simple int=(24/4)=6%*2*P

=r*n*P=0.06*2*P=0.12P

comp int = A-P

=P(1+r/100)^n - P

=P(1+r/100)^2-P

=P(1.06)^2-P

=P(1.06*1.06 - 1)

=P*1.1236

So Difference

1.1236P-0.12P=25

1.0036P=25

P=25/1.0036

=24.91