Question

(i) The difference between simple interest and compound interest for 2 years of a
sum of money becomes Rs. 80 at 4% interest per annum. Calculate the sum of money.
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Answer 1

Answer:

The sum is ₹50,000

step-by-step explanation :

Simple interest : prt/100

→ p × 4 × 2/100

→ 2p/25

Compound interest :

→ Amount - principal

→ p(1 + r/100)ⁿ - p

→ p(1 + 4/100)² - p

→ p(1 + 1/25)² - p

→ p(26/25)² - p

→ 676p/625 - p

→ 51p/625

Given :

→ S. I. - C. I. = 80

→ 51p/625 - 2p/25 = 80

→ 51p - 50p/625 = 80

→ p/625 = 80

→ p = 80*625

→ p = ₹50,000

Required answer : ₹50,000