if the differnce between the compound interest and simple interest on a sum of money for 2 years is 1% of the sum of money, then find the rate of interest
Answers
Answered by
1
Let the sum of money be x and rate be r
time = 2 years
SI = P×R×T/100=
= 2xr/100
= xr/50
CI= P[1+R/100]^T-P
= x(100+r/100)^2-x
Difference= SI-CI
=x(100+r/100)(100+r/100)-x+-xr/50
=x(100+r/100)(100+r/100)-(50+r/50)
Difference=1%of x
=x/100
x/100=x(100+r/100)(100+r/100)-(50+r/50)
[Calculation is in attachment]
(r)^2/10000=1/100
(r)^2=10000/100
r=√100
r=10%
(I hope this would help you)
Attachments:
Similar questions