Question

The difference between simple interest and compound interest on a certain sum is Rs54.40 for two year at 8% per annum. find the sum​

Answer 1

Answer: Rs. 0.35 or 35 paise

Step-by-step explanation: let the money be Rs.X

Case of SI

Principal(P) = Rs. 54.40

Time(T) = 2 yrs.

Rate(R)= 8% per annum

Therefore,

SI = PRT/100

=54.40 x 8 x 2/100

=Rs.8.70

Case of CI

p= Rs. 5440/100

r =8% p.a comp. yearly

t= 2 yrs

Amount= p(1 +r/100) to the power n              where n = no. of years

             5440/100 ( 1+ 8/100)²

=  5440/100 x (27/25)²

= Rs.63.45

Therefore

CI = Amount - P

=Rs(63.45 - 54.40)

=Rs. 9.05

Therefore the difference between CI and SI

=Rs.( 9.05 - 8.70)

= Rs. 0.35 or 35 paise