Question

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

Answer 1

Answer:

For ,

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 -- ANS