Question

if simple interest on a sum of money for 1 year is Rs 50 and compound interest for 2 years is Rs 102.Then calculate the sum of money and rate of interest pe annum

Answer 1

Interest is 4%
Sum is 1250/-

Answer 2

Answer: Rate=4%

Principal= RS 1250

Step-by-step explanation:

Simple interest for 1 yr= RS 50

Simple interest for 2 yrs=RS 100

But compound interest for 2 yrs = RS 102

Therefore, interest on RS 50 for 1 yr = Rs(102-100)=Rs2

Interest on RS 100 for 1 yr=2/50*100= RS 4

Rate of interest=4%

Principal= S.I. *100/ r*t

=50*100/4*1

= RS 1250