Question

If the difference of the CI and the SI on a sum of money for two years is Rs 12.50 at the annual interest rate of 5%, find the sum of money.
plz solve this question. ​

Answer 1

Answer:

Here is ur answer mate I hope it helps

Step-by-step explanation:

The other answer given is correct but I will formulate it differently in case that helps some readers

Firstly CI is compound interest

SI is simple intérêts

We are asked to solve for the rate r which in two years has a future value (1 + r )^2 and has we calculated the future value using Simple interest method it be 1% less

Therefore CI - SI = 0.01

So you can solve (1+r)^2 - (1 + 2 r ) = 0.01

Expand to 1+ 2r + r^2 -1 -2r = 0.01

r^2 = 0.01 therefore r = 0.01)^1/2

r = 0.10. Or 10%

Thank you

Have a nice day

Answer 2

Answer:

5000

Step-by-step explanation:

CI-SI =p(r/100)^2

12.50=p(5/100)^2

12.50=p*1/20*1/20

12.50*20*20=p

5000=p