The difference between compound and simple interest on a
certain sum of money for 2 years at 2% p.a. is ₹1. Find the sum of
money lent .
Answers
Answered by
1
Step-by-step explanation:
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
=
100
2
Pr
2
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=
100
2
P(4)
2
⇒20=
100×100
P(4×4)
⇒5×25×100=P
⇒P=Rs.12500
Hence, the answer is Rs.12500.
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