Question

The difference between CI and SI on a certain sum of money at 10% p.a. for 2 years is Rs 500. Find the sum when the interest is compounded annually?

Answer 1

Answer:

50000

Step-by-step explanation:

Let sum be x

x(1+10/100)^2[CI]= (x*10*2)/100[SI]+x[Sum]+500

x(1+1/10)^2=x/5+x+500

x*11/10*11/10=(x+5x+2500)/100

121x/100=(6x+2500)/5

121x=(6x+2500)/5*100

121x=(6x+2500)*20

121x=120x+50000

121x-120x=50000

1x=50000

x=50000

Answer 2

Rs 50,000 is the sum.

Step-by-step explanation:

The difference between CI and SI is Rs 500

Therefore,  CI - SI = 500

Let sum be P

Rate of interest, r = 10% P.A.  (compounded annually)

Time, t = 2 years

• Compound Interest, $CI=P(1+r)^t-P$

$CI=P(1+0.1)^2-P$

$CI=0.21P$

• Simple Interest, $SI=Prt$

$SI=P\times 0.1\times 2$

$SI=0.20P$

CI - SI = 500

0.21P - 0.20P = 500

            0.01P = 500

                  P = 50000

#Learn more:

https://brainly.in/question/12276763