Question

Ir the difference between compound and simple interest on a comam principal a 10% per annum
for 2 years is 50 when compounded yearly, find the sum​

Answer 1

Answer:

For first year, S.I. = C.I.

Now, Rs. 16 is the S.I. on S.I. for 1 year.

∴ Rs. 10 is S.I. on Rs. 100

∴ Rs. 16 is S.I. on (

10

100

×16)=Rs.160

∴ S.I. on principal for 1 year at 10% is Rs. 160.

∴ principal =(

10×1

100×160

)=Rs.1600.

Amount for 2 years compounded half yearly

=Rs.[1600×(1+

100

5

)

4

]=Rs.1944.81

∴C.I.Rs.(1944.81−1600)=Rs.344.81

S.I.=Rs.(

100

1600×10×2

)=Rs.320

∴(C.I.)−(S.I.)=Rs.(344.81−320)=Rs.24.81