Question

if at a same rate of interest in 2 years the simple interest is rs.40 and compound interest is rs.41 then what is the principal?​

Answer 1

Answer:

Hi!

SI for one year = 40/2 = 20 rupees.

CI for 2 years = 41 which is clearly => 20+ 20 + 1

Now, the 1 extra is the interest on Rs. 20 for 1st year and thus, the rate of interest = 1/20.

Also, first year interest = 1/20 x principal = Rs.20

So Principal = 20 x 20 = 400.

Hope this helps! :)