Question

The difference between simple interest and compound interest on a certain sum of money for 2 years at 8% per annum is Rs 70.Find the sum.

Answer 1

Let sum be 'p'.
S. I. =(p×r×t)/100
=(p×8×2)/100
=4p/100.

C. I. =p[(1+(8/100)^2-1]
=p[(27/25)^2-1]
=(729/625-1)p
=104/625p
According to the question,
C. I. -S.I=70
104/625p-4p/25=70
(104p-100p)/625=70
4p=43750
P=10937.5