Question

the difference between simple interest and compound interest on a certain sum of money for 2 years for 10%p.a is 25. find the sum

Answer 1

compound interest=sum* (1+0.1) power 2 -sum (after applying formula)

compound interest= 0.21* sum

Simple interest=sum(1+0.1*2) -sum=sum* 0.2

difference

0.21 *sum-0.2 *sum=25;

sum=2500;