the difference between the compound interest and interest on a certain sum of money at 10% per annum for 2 years is rupees 500 find sum when the interest is compounded annually
Answers
Answer:
Rs. 50000
Step-by-step explanation:
Given that the difference between the compound interest and interest on a certain sum of money at 10% per annum for 2 years is rs 500.
We need to find out the sum.
Assumption: Let's say that the sum is Rs. x.
We know that-
CI = P(1 + r/100)^t - P
(where CI is compound interest, P is principal having value x, r is rate having value 10% and t is time having value 2 years)
CI = x (1 + 10/100)² - x
CI = x (11/100)² - x
CI = x × 121/10000 - x
CI = 1.21x - x
SI = (P × R × T)/100
(where SI is simple interest, P is principal having value x, R is rate having value 10% and T is time having value 2 years)
SI = (x × 10 × 2)/100
SI =0.2 x
Difference = 500 (given)
CI - SI = 500
1.21x - x - 0.2x = 500
0.01x = 500
x = 50000
Therefore, the sum is Rs. 50000.
Answer:
your answer is rupees 50000