Question

On what sum of money will the difference between the compound interest and the simple interest
for two years be equal to Rs.25 if the rate of interest charged for both is 5% per annum.​

Answer 1

Answer:

Step-by-step explanation:

Let P be the sum of money and no. of years=2

Rate of interest =5%

Simple interest=P*2*5/100

Compound interest-p(1+5/100)^2-p

Given that the difference between compound interest and simple interest=Rs.25

P(1+5/100)^2-p-P*2*5/100=25

(1+1/20)^2-p-P/10=25

P((21/20)^2-1-1/10)=25

P(441/400-1-1/10)=25

P(441-400-40)/400=25

P(1/400)=25

P=24*400

P=10000

thus, the sum of money is 10000