Question

On what sum of money does the difference between the simple interest and compound interest in 2 year at 5% per annum is ₹15

Answer 1

Simple interest = PNR/100

N = 2 and R = 5

Hence simple interest = 5(2)P/100 = 10P/10=0.1P

Compound interest = P(1+R/100)^n-P where

N = 2 and R = 5 here

Compound interest = P(1.05)^2-P = 0.1025P

Given that the difference between the compound interest and simple interest on a certain sum of money at 5% per annum for 2 years is rupees to 15.

i.e. 0.1025P-0.1P = 0.0025P = 15

P = 15/0.0025 = 6000

Sum =6000 rupees