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:

Step-by-step explanation:

let the sum of money or principal be Rs. x

time=2 years, rate=5% p.a

simple interest= (principal*rate*time)/100

                        = (x*5*2)/100

                         = x/10 (simple interest)

compound interest={ p(1+ R/100)^n} -p  , where n=2years

= {x*(1+5/100)^2}-x

=41x/400 (compound interest)

according to the question,

41x/400 - x/100 = 50

=(41x-40x)/400 = 50   (taking lcm of 400 and 10)

= x/400=50

= x= 400*50 ( by doing cross multiplication)

= x= 20000

  hence the sum of money is 20000 rupees.