Question

on what sum of money will the difference between the simple interest and compound interest for 2 years at 5% pa be equal to Rs 50

​

Answer 1

Answer:

For ,

N=2years

R=5 % 

We have S.I.=100PNR=100P×2×5=10010P=0.1P

And on interest being compounded for 2  years and R=5 %, Amount=P(1+100R)N=P(1+1005)2=P×(1.052)=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