Question

The difference between the compound interest and the simple interest on a sum of
money deposited for 2 years at 5% per annum was Rs.105. Find the sum of money.​

Answer 1

Let the sum of money be Rs. P.

Then, the Simple interest for 2 years at 5% p.a. = P x 5 x 2 / 100 = P/10 = 0.1 P.

Similarly, Compound Interest = P(1 + 5/100)^2 - P = P(1.05^2 - 1) = 0.1025 P.

According to given, 0.1025 P ~ 0.1 P = 0.0025 P = Rs. 100

Thus, P = Rs. (100 / 0.0025) = Rs. 40,000.

Answer 2

Step-by-step explanation:

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