Question

The difference between the compound interest and simple interest on a certain sum of money at 10% per annum for two years is ₹20.Find the Sum​

Answer 1

Same questin in another model:

The difference between the compound interest and simple interest on a certain sum of money at 10% per annum for 2 years is Rs.500. Find the sum when the interest is compounded annually.

Step-by-step explanation:

Answer

Let the sum be Rs.100

Computation of compound interest:

Prinicpal =Rs.100

R=10% per annum and n=2 years.

Amount=Rs. [100 x square of (1+10/100)]

=Rs.[100 x square of (11/2)] =Rs.121

Computation of simple interest:

Prinicpal =Rs.100

R=10% and Time =2 years.

∴S.I.=Rs.(100x10x2/100=Rs.20

Thus, difference in C.I. and S.I.=Rs.(21−20)=Re.1

Now, if difference between C.I and S.I. is Re.1, Then Sum =Rs.100

If difference between C.I. and S.I. is Rs.500, Then Sum =Rs.(100×500)=Rs.50000

Hope this will be helpful for you..