Question

the difference between simple interest and compound interest( compounded annually) on a sum of money for 2 years at 10% per annum is rupees 65 the sum is

Answer 1

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Answer 2

Answer:

The sum is Rs.6500

Step-by-step explanation:

Let the principal be x  

Time = 2 years  

Rate of interest = 10%

Formula : $A=P(1+r)^t$

$A=x(1+0.1)^2$

$A=1.21x$

Compound interest = Amount - principal = 1.21x- x=0.21x

Formula : $SI = \frac{P \times R \times T }{100}$

 $SI = \frac{x \times 10 \times 2 }{100}$

 SI = 0.2x

Now we are given that the difference between simple interest and compound interest is rupees 65

So, $0.21x-0.2x=65$

$0.01x=65$

$x=\frac{65}{0.01}$

$x=6500$

Hence the sum is Rs.6500