Question

On what sum of money will the difference between the simple interest and compound Interest for 2 years at 5% per annumbe equal to Rs. 50 ? ​

Answer 1

Answer:

The difference between the Compound Interest and Simple Interest for a Principal of 'P' and rate of interest “I" is given by the formula

C.I- S.I for 2- years= P(I/100)²

here P= ?

Rate of interest I= 5%

C.I -S.I = Rs 50

So 50= P (5/100)²

So P= 50/(5/100)²

Principal = Rs 20,000

Answer 2

Step-by-step explanation:

For ,

For ,N=2years

For ,N=2yearsR=5 %

For ,N=2yearsR=5 % We have S.I.= 100PNR = 100/P×2×5 = 100/10P=0.1P

And on interest being compounded for 2 years

and R=5 %, Amount=P(1+ 100R)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