if the difference between compound and simple interest on a certain sum of money for three years at 2% per annum is 605/-, what is the sum?
Answers
Answered by
1
Answer:
The difference between the simple interset and compound interest on a certain sum of money 'P' for 2 years at r% per annum is given by :
⇒(CI−SI)
2year
=
100
2
Pr
2
Using the above formula for a sum of money 'P' invested for two years at 4% p.a., given that the difference between CI&SI is Rs.20
∴20=
100
2
P(4)
2
⇒20=
100×100
P(4×4)
⇒5×25×100=P
⇒P=Rs.12500
Hence, the answer is Rs.12500.
Similar questions