Question

) The difference between simple interest
and compound interest on a certain sum of
money is Rs.32 at 8% per annum for 2 years.
Find the amount.​

Answer 1

Rate,r=8%p.a

Time,n or t=2 years

Principal,p=??

s.i=p×r×t/100

s.i=p×8×2/100

s.i=4p/25

and,

a=p(1+r/100)^n

a=p(1+8/100)^2

a=p(108/100)^2

a=p×108/100×108/100

a=2916p/2500

c.i=a-p

c.i=2916p/2500-p

c.i=416p/2500

A/Q

c.i-s.i=32

416p/2500-4p/25=32

16p/2500=32

p=32×2500/16

p=5000 rupees