Question

on what sum of money will the difference between the compound interest and simple interest for 2 years be equal to ₹25 if the rate of interest charged for both is5%p.a.

Answer 1

Firstly,
Compound Interest=
A-P
P [(1+5/100)^2]-P
P [105/100]^2-P
P [21/20]^2-P
[441P/400]-P
41P/400

Secondly,
Simple Interest=
(P*5*2)/100
P/10

ATQ,

CI-SI = 25 //(CI is always greater than SI)
41P/400 - P/10
On solving we get that,
P=Rs.10000

So the answer is Rs.10000