Question

6. On what sum of money will the difference between
the simple interest and the compound interest for
2 years at 5% per annum be equal to 50 ?
1​

Answer 1

Step-by-step explanation:

let principle =P

Given,

T=2years

R=5%

difference =50

For SI,

I=P*R*T/100 =P*5*2/100 =P/10

For CI,

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

=P(1+5/100)²

=441P/400

CI =A-P =441P/400 - P

= 41P/400

Now,

difference =50

CI -SI =50

41P/400 - P/10 =50

P/400 =50

P =50*400 =Rs. 20,000