Question

The difference between the compound interest and simple interest on a certain sum of money at 15% per annum for 2 years is rupees to 144 .Find the sum.

Answer 1

Simple interest = PNR/100

N = 2 and R = 15

Hence simple interest = 15(2)P/100 = 3P/10=0.3P

Compound interest = P(1+R/100)^n-P where

N = 2 and R = 15 here

Compound interest = P(1.15)^2-P = 0.3225P

Given that the difference between the compound interest and simple interest on a certain sum of money at 15% per annum for 2 years is rupees to 144 .

i.e. 0.3225P-0.3P = 0.0225P = 144

P = 144/0.0225 = 6400

Sum =6400 rupees