Question

Find the difference between SI and CI on Rs 10,000 for 2 yrs at the rate of 5% per annum.

Answer 1

We know that difference between CI and SI for 2 years is PR²/10000

⇒5=10000R²/10000

⇒R²=5

⇒R=±√5 ignoring negative value

∴R=2.2360679775

Rate of interest is 2.24% p.a.