Question

The difference between compound and simple
interest on certain sum of money for 2 years
at 4% p.a is rs1 . The sum (in) is!​

Answer 1

Answer:

The difference between the simple interset and compound interest on a certain sum of money 'P' for 2 years at r% per annum is given by :

⇒(CI−SI)2year=1002Pr2

Using the above formula for a sum of money 'P' invested for two years at 4% p.a., given that the difference between CI&SI  is Rs.20

∴20=1002P(4)2

⇒20=100×100P(4×4)

⇒5×25×100=P

⇒P=Rs.12500

Hence, the answer is Rs.12500.

Answer 2

Answer:

compound means compound and simple means simple