Question

determine the sum of which the difference in the compound interest a simple interest at 2% p.a. for 4 Years rupees 226​

Answer 1

Answer:

Simple Interest SI=  

100

PNR

​  

 

So, SI=  

100

28000×2×25

​  

=Rs14000

When interest is compounded, Amount A=P(1+  

100

R

​  

)  

n

 

So, A =28000×(1+  

100

25

​  

)  

2

=Rs43750

And CI=A−P=43750−28000=Rs15750

Si, difference CI−SI=Rs15750−Rs14000=Rs1750

Explanation:

Answer 2

Given:

Rate of interest=2% p.a.

Number of years=4

Difference=Rs.226

To find:

The principal sum

Solution:

The principal sum is Rs.1,13,000.

We can find the sum by following the steps given-

We know that the compound interest and the simple interest will be calculated separately and then deducted to get the difference.

Let the principal sum be P.

We know that the simple interest is the product of this sum, rate, and the number of years which is then divided by 100.

So, simple interest=Principal sum×rate of interest×number of years/100

Simple interest=P×2×4/100

=8P/100

=0.08P

Now, the compound interest can also be obtained as follows-

The amount after adding compound interest=Principal×$(1+Rate/100)^{number of years}$

Amount=P×$(1+2/100)^{4}$

Amount=P×$(1.02)^{4}$

Compound interest=Amount-principal sum

Compound interest=P$(1.02)^{4}$-P

=P[$(1.02)^{4}$-1]

=P(0.082)

We are given that the difference between compound and simple interest is Rs.226.

Compound interest-simple interest=226

On putting the values,

0.082P-0.08P=226

0.002P=226

2P/1000=226

2P=2,26,000

P=2,26,000/2

P=1,13,000

Therefore, the principal sum is Rs.1,13,000.