Question

9.
The difference between compound interest
and simple interest at 10 % per annum in two
years is Rs 50. Find the sum.
und interest​

Answer 1

Answer:

Simple interest:

x (the sum) * 10% * 2 years = 0,20 x = the accumulated interest in 2 years

Compound interest:

[ x (the sum) * (1+i) * (1+i) ] - x = the accumulated interest in two years

[ x * (1+i)^2] - x = [ x * (1+10%)^2 ]- x = 1,21x - x = 0,21 x

The difference between compound and simple interest is Rs 50, or as a formula:

0,21x - 0,20 x = Rs 50

0,01x = Rs 50

x = Rs 50 / 0,01

x = the sum = Rs 5,000