Question

The difference between compound interest and simple interest for 2years at 5%per annum is Rs.12.Find the sum of money?.

Answer 1

Answer:

Rs4,800

Step-by-step explanation:

N=2years

R=5 %

We have S.I.=100PNR=100P×2×5=10010P=0.1P

And on interest being compounded for 2 years and R=5 %, Amount=P(1+100R)N=P(1+1005)2=P×(1.052)=1.1025P

So, C.I.=A−P=1.1025P−P=0.1025P

Given, C.I.−S.I=Rs12

0.1025P−0.1P=Rs12

0.0025P=Rs12

P=Rs4,800