Question

the difference between compound interest and simple interest at 10% per annum in 2 years (compounded annually) is ` 50. Find the sum.

Answer 1

Answer:

5,000

Explanation:

time = 2

r= 10%

principal = P

simple interest= p×2×10/100= P /5

COMPOUND INTEREST

A= P ( 1+r/100) ^2

= P (1+ 10/100) ^2

= P (1+1/10) ^2

=P (11/10) ^2

=121 P /100

compound interest = A- P = 121 P /100 - P

= (121 P - 100 P) /100

= 21 P /100

difference between CI, SI= 50

=> CI-SI= 50

=> 21P/100- P/5= 50

=>( 21 P -20 P)/100 = 50

=> P /100=50

=> P = 100×50= 5000

principal = ₹ 5,000