Question

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

Answer 1

Answer:

20,000 rs.

Step-by-step explanation:

let p is the sum of money.

as we know the formula

difference in simple interest and compound interest  for 2 years=

$p*(\frac{r}{100})^{2}\\\\50=p*(\frac{5}{100})^{2}\\\\50=p*\frac{1}{400}\\\\p=20000$

so sum of money is 20,000 rs.

Answer 2

Answer:

=> Rs. 20,000

Step-by-step explanation:

As per the data given in the question,

N = $2$ years

R = $5$%

As we know that,

$S.I = \frac{PNR}{100}$

Putting the given values in the formula,

$=>\frac{P\times 2\times 5}{100}$

$=>\frac{10P}{100}$

$=>0.1P$

And based on a two-year compounded interest rate and the rate of $5$%.

The formula for amount is:

$A=P(1+\frac{R}{100})^N$

$=>P(1+\frac{5}{100})^2$

$=>P\times (1.05)^2\\=>1.1025P$

For compound interest we have,

$C.I.=A-P$

$=> 1.1025P-P\\=>0.1025P$

Therefore,

$=>C.I.-S.I=Rs.50$

$=> 0.1025P-0.1P=Rs50$

$=> 0.0025P=Rs50$

Divide both sides by 0.0025, we get

$=>Rs.20,000$

Hence, the required answer is Rs. 20,000.