Question

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 .​

Answer 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."

Answer 2

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.