Question

On what sum of money will the difference
between simple interest and compound interest
for 2 years at 5% per annum be equal to ₹50
​

Answer 1

Answer:

N=2years

R=5 %  

We have S.I.=  

100

PNR

​  

=  

100

P×2×5

​  

=  

100

10P

​  

=0.1P

And on interest being compounded for 2  years and R=5 %, Amount=P(1+  

100

R

​  

)  

N

=P(1+  

100

5

​  

)  

2

=P×(1.05  

2

)=1.1025P

So, C.I.=A−P=1.1025P−P=0.1025P

Given, C.I.−S.I=Rs50

=>0.1025P−0.1P=Rs50

=>0.0025P=Rs50

=>P=Rs20,000

Step-by-step explanation: