Question

The difference between the compound interest and simple interest on the certain sum of at 5 percent per annum for 2 years is rupees 3 . find the sum

​

Answer 1

Answer:

principle = Rs. 1200

Step-by-step explanation:

let the sum be x

simple intrest = principle × rate × time ÷ 100

= x × 5 × 2 ÷ 100

= x ÷ 10

compound interest = principle ( 1 + rate)^ time - principle

= x ( 1 +0.05 )^ 2 - x

= x (1.1025) - x

so we have difference

= [x (1.1025) - x ] - 0.1 x

=[ 1.1025x -x ] - 0.1 x

= 0.1025 x - 0.1 x

= 0.0025 x

0.0025 x = 3 ................given

x = 3 ÷ 0.0025

= 1,200

principle = Rs. 1200