Question

difference between the compound interest and simple interest on certain sum of money at 10% per annum for 2 years is rupees 500 find the sum when the interest is compounded annually

Answer 1

simple interest is 10% and 2years is answer 625

Answer 2

Formula for 2 years

Difference=P(R/100)²
500 = P(10/100)²
P= 500x100
∴Sum P = 50000rs