Question

the difference between simple interest and compound interest on the same sum of money for 2 years at 4% per annum is rupees 20 find the sum

Answer 1

lET The principle be x FOr simple interest, P=x RAte of interest=4 tIme =2years SImple interest=(p*r*t)/100 =2x/25 FOr compound interest, p=x RAte=4 Time=1 SI=(p*r*t)/100 =x/25 aMount=p+si =X+x/25 =26x/25 FOR second year, P=26x/25 R=4 t=1 Si=p*r*t/100 =26x/625 amount=p+si =26x/25+26x/625 =676x/625 cI=a-p =676x/625-x =51x/625 A/q 51x/625-2x/25=20 X/625=20 X=625*20 X=12500