Question

The difference between compound interest and simple interest is Rs 96 at 20% per annum for two years. How do I calculate the principal amount?

Answer 1

Assume the following:

p = Principal; n= Years; r= Rate of Interest

n here is 2 years and r is 20% per annum

Simple Interest (S) = (p*n*r)/100 = (p*2*20)/100 = 40p/100 = 0.4p

Compound Interest (C) = [p*(1+(r/100)^n)] -p = [p*(1+0.2)^20]-p = 1.44p - p = 0.44p

0.44p = 0.4p+96 ===> 0.04p = 96.00 ===> p = 96.00/0.04 =2400

ANSWER:-2400

HOPE IT HELPS ✌

Answer 2

hello....

p = Principal
n= Years;
r= Rate of Interest

(S) = (pnr)/100 = (p2X20)/100
= 40p/100
= 0.4p

(C) = [pX(1+(r/100)^n)] -p
= [pX(1+0.2)^20]-p
= 1.44p - p
= 0.44p

= 0.4p+96
=0.04p = 96.00
=p
= 96.00/0.04
= 2400

thank you