Question

Q.1.The difference in simple interest and compound interest on a certain sum of money in 2 years at 10 % p.A. Is rs. 50. The sum is

Answer 1

Step-by-step explanation:

I hope it helps you a lot

Answer 2

Given:

Number of years=2

Rate of interest=10% p.a.

To find:

The principal sum

Solution:

The principal is Rs.5,000.

Let the principal be P.

Simple interest=Principal×rate×number of years/100

=P×10×2/100

=20P/100

Amount-Principal=compound interest

Amount=Prinicipal×$(1+rate/100)^{years}$

Amount=P×$(1+10/100)^{2}$

=P$(11/10)^{2}$

=121P/100

Compound interest=121P/100-P

=(121P-100P)/100

=21P/100

Difference between simple and compound interest=Rs.50

21P/100-20P/100=50

P/100=50

P=50×100

P=Rs.5,000

Therefore, the principal is Rs.5,000.