Question

The difference between the compound interest and the simple interest on a certain sum for 2yrs at 6% per annum is 90rs. Find the sum
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Answer 1

Step-by-step explanation:

Let the sum is Rs100

6% Simple interest for 2 years = 6×2=Rs 12

Compound interest for 2 years = 100(1+6/100)^2 – 100 = 100×1.06^2–100 =1.1236×100 –100 = 112.36–100 =Rs 12.36

So difference of interest = 12.36-12 = Rs .36

Rs .36 is the difference when the sum is Rs 100

Rs 90 is the difference when the sum

= (100/.36)× 90 = Rs 25000

The sum is Rs 25000