Question

A certain principal is invested at the annual rate of interest of 5% for 2 years. The difference between compound interest and simple interest is Rs.I (Rupee one). What is the principal?

Answer 1

Answer:

Principle=400

Step-by-step explanation:

SI for 2 years for 5% interest=5*2=>10%

CI for 2 years formula

2R+R^2/100

2*5+r^2/100=10.25

The difference between compound interest and simple interest is Rs.I (Rupee one).

10.25-10=0.25%

0.25%=1 rupee

100%=400 rupees