Question

Find the difference between C.I and S.I On 5000 for 1Year at 2 p. a, if the interest is compound half yearly

Answer 1

Answer:

Step-by-step explanation:

Given the difference between compound interest and simple interest on a certain sum of money is 5,000

Time = 1 yrs

Rate of interest = 2%

As per the question :-

$\bold{\green{\boxed{p[(1+i)^n-1] - p * i * t = 5000}}}$

$p[(1+0.01)^2-1] - p * 0.02 * 1 = 5000$

$p(0.0201) - p(0.02)= 5000$

$(0.0001)p = 5000$

$\bold{p = 5,00,00,000}$

Thus the principle amount is 5,00,00,000