Question

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

Answer 1

Answer:

For ,

N=2years

R=5 %

We have S.I.=

100

PNR

=

100

P×2×5

=

100

10P

=0.1P

And on interest being compounded for 2 years and R=5 %, Amount=P(1+

100

R

)

N

=P(1+

100

5

)

2

=P×(1.05

2

)=1.1025P

So, C.I.=A−P=1.1025P−P=0.1025P

Given, C.I.−S.I=Rs50

=>0.1025P−0.1P=Rs50

=>0.0025P=Rs50

=>P=Rs20,000

Hope this helps ♥️