Question

The difference between compound interest and simple interest for 2 years on the same sum at 5% p.a is ₹240.Find the sum.

Answer 1

Difference between C.I and S.I for 2 years is nothing but the 'interest' on the 'simple interest earned on first year'

Hence, 5% of S.I = 240

5/100 * S.I = 240.... S.I = 240*100/5 = 4800

S.I for first year = 4800

5% of P = 4800

P = 4800*100/5 = 96000 Rs.

Hence, sum = Rs.96,000

Answer 2

Answer:

Rs. 9,600

Step-by-step explanation:

Interest rate per annum = 5% (R)

Years = 2 (N)

C.I - S.I = Rs.240

CI. -S.I = [R/100]^2×P

240×100×100 / 5*5 = P

240*20*20

P = Rs.9,600