Question

The difference between the compound interest and the simple interest on a certain sum at 5% per annum for 2 years is rs. 1.50. Find the sum. Select one:
a. Rs 500
b. Rs 620
c. Rs 600
d. Rs 550

Answer 1

Answer:

600

Step-by-step explanation:

Formula to difference between SI and CI for 2 years is given by

           D= P(R/100)², where D= Difference

                                              R= Rate of interest

            By substituting the values for D and R

           1.5= P(5/100)²

           1.5*400= P

            P= 600

Please note: This formula is to be applied when given Time period is 2years and not in other cases.