Question

if the difference of simple and compound interest on a certain sum of money for 2 years is 1/25th part of that sum then the rate of interest is?​

Answer 1

Answer:

Let the sum of money be ′x′ = Principal (P)

R=5%

T=2 years

C.I=P(1+100R)T−P

        =x(1+1005)2−x

        =400441x−x

        =40041x

S.I=100PTR

        =100x×2×5

        =10x

ATP,  40041x−10x=25

         40041x−40x=25

⇒x=10,000

Hence the sum is Rs 10,000

<Hope this helps you frnd...