Question

On what sum of money does the ditterence between the simple interest and compound interest in 2years at 5./. p.a is 15

Answer 1

SI=PTR/100

=(P×2×5)/100

=10P/100

=>P/10 =0.1P

Similarly, Compound Interest = P(1 + 5/100)^2 - P = P(1.05^2 - 1)

= 0.1025 P

According to given, (0.1025 P) - (0.1P )

= 0.0025 P =>Rs. 15

Thus,

P = Rs. (15 / 0.0025)

=>Rs. 6,000

Hope it helps