Question

simple interest on a certain sum of money for 2 years is 200 and compound interest on the same for the same period at the same rate of interest amounts to 205. find the amount of loan and the rate of interest​

Answer 1

Answer:

Amount of loan: 2000

Rate of interest: 5 p.a

Step-by-step explanation:

The difference between compound interest and simple interest for a period of 2 years is given by

(p*r^2)/100^2