Question

Find the sum on which the difference between the simple interest and the compound intrest at the rate of 8%per annum compounded annuly be ₹64 in 2 years

Answer 1

Heya friend,

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Let ₹P be the principal. Then,

S.I. = P × R × T/100

= P × 8 × 2/100

= ₹ 4P/25

C.I. = P{(1+R/100)^n - 1

= P{(1+8/100)^2 - 1

= P{(100+8/100)^n - 1

= P{(108/100)^2 - 1

= P{(27/25)^2 - 1

= P{729/625 - 1}

= P{729-625/625}

= P{104/625}

= ₹104P/625

According to question,

C.I. - S.I. = 64

=> 104P/625 - 4P/25 = 64

=> 104P - 100P/625 = 64

=> 4P/625 = 64

=> P = 64 × 625/4

=> P = ₹10,000

Hence, the sum is ₹10,000.


Thanks

With regards@

Tanisha