Question

The difference between compound interest and simple interest on a certain sum for 2 years at 10% per annum is ₹600. find the sum.​

Answer 1

Answer:

Step-by-step explanation:

Let the sum be Rs.100

Computation of compound interest:

Prinicpal =Rs.100

R=10% per annum and n=2 years.

Amount=Rs.⎣⎢⎡​100×(1+10010​)2⎦⎥⎤​

               =Rs.⎣⎢⎡​100×(211​)2⎦⎥⎤​=Rs.121

Computation of simple interest:

Prinicpal =Rs.100

R=10% and Time =2 years.

∴S.I.=Rs.(100100×10×2​)=Rs.20

Thus, difference in C.I. and S.I.=Rs.(21−20)=Re.1

Now, if difference between C.I and S.I. is Re.1,    Then Sum =Rs.100

If difference between C.I. and S.I. is Rs.500,    Then Sum =Rs.(100×500)=Rs.5000