Question

71.
interest on the same sum at the same rate fc
2. The difference between the compound inte
sum for 2 years at 4% per annum is 20. Fi.​

Answer 1

Answer:

The difference between SI and CI for 2 years is the Interest upon First year Interest

Given , Interest Upon First year Interest = 20

Now,

4% of First year Interest = 20

So 100% of First year Interest = 500

This First year Interest is the Interest upon the Sum

Now , 4 % of Sum = 500

So 100 % of Sum = 12500

Therefore Sum = 12500