The difference between the compound interest and
Ithe simple interest
a certain sum for a
years . at 5% per annum å f 60. Find the
sum .
akshayab761:
are u in class 8????
Answers
Answered by
1
Simple interest is calculated on the principal, or original, amount of a loan. Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as "interest on interest."
Answered by
26
Correct question:
- The difference between the compound interest and simple interest on a certain sum of money at 5% per annum for 2 years is Rs. 60, Find the sum.
Answer:
Explanation:
Given :
- (C.I - S.I)_{2 years} = Rs. 60
- Rate (r) = 5 %
- Time (t) = 2 years
To Find :
- The sum, P
Solution :
The difference between the simple interset and compound interest on a certain sum of money 'P' for 2 years at r% per annum is given by,
.°. (C.I - S.I)_{2 years} = Pr²/100²
⇒ 60 = P × 5²/100²
⇒ 600 × 10000 = P × 25
⇒ 6000000 = P × 25
⇒ P = 6000000/25
⇒ P = Rs. 240000
Hence, the sum is Rs. 240000.
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