Question

if the difference between the compound interest and simple interest for 2 years at 12% per annum compounded annually is rupees 108 find the sum borrowed
ans 7500
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Answer 1

Answer:

$\huge\fbox\red{A}\fbox\pink{n}\fbox\purple{S}\fbox\green{w}\fbox\blue{E}\fbox\orange{r}$

Explanation:

Let P be the sum borrowed.

n = 2 years and r = 5% p.a.

According to the question,

CI - SI = 12

P(1 + r)n - P - Pnr/100 = 12

P[(1 + r)n - 1 - 2r/100] = 12

P[1.052 - 1 - 2 × 5/100] = 12

P × 0.0025 = 12

P = Rs. 4800