Question

Determine the sum for which the difference in the compound interest and simple interest at 50% p.a. for 2 years is rs.700.

Answer 1

Let the sum of money be Rs x SI=x*2*50/100=x Now, amount after 2 years =Rs x*(1+50/100)2=Rs 9x/4 CI=9x/4-x=Rs 5x/4 therefore, 5x/4-x=700 x=2800 the required sum of money is Rs 2800

Answer 2

Answer:

The principal value is P=Rs.2800.        

Step-by-step explanation:

Given : At 50% p.a. for 2 years is Rs.700.

To find : Determine the sum for which the difference in the compound interest and simple interest ?

Solution :

Let the principal be 'P'.

Rate R=50%=0.5

Time T=2 years

The simple interest is $SI=P\times R\times T$

$SI=P\times 0.5\times 2$

$SI=P$

Now, The compound interest is

$A=P(1+r)^t$

$A=P(1+0.5)^2$

$A=P(1.5)^2$

$A=2.25P$

Compound interest = Amount - Principal

CI=2.25P-P

CI=1.25P

We have given, $CI-SI=700$

$1.25P-P=700$

$0.25P=700$

$P=\frac{700}{0.25}$

$P=2800$

Therefore, The principal value is P=Rs.2800.