Question

The difference between simple interest and compound interest on a certain sum of money at 20%per annum for 2 years is ₹48.find the principle

Answer 1

Let principle = Rs x
Rate =20%
Time= 2 yrs
SI= prt/100= x*20*2/100=2x/5
CI= p{(1+r/100)-1}= x{(1+20/100)-1}=x[(6)^2-(5)^2/(5)^2]=11x/25
Now 11x/25-2x/5=48
or 11x-10x/25=48
or x=Rs 1200