Question

The difference between the compound interest and the simple interest on a certain sum for 2 years at 5 % per annum is rupees 40. find the sum
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Answer 1

Step-by-step explanation:

Given that the difference between the compound interest and the simple interest on a certain sum for 2 years at 5 % per annum is rupees 40.

Where T = 2 years, R = 5%, and difference of CI & SI = Rs. 40

SI = (P × R × T)/100

Substitute the values,

SI = (P × 5 × 2)/100

SI = 10P/100

SI = P/10

Now,

CI = P (1 + R/100)^T - P

Substitute the values,

CI = P (1 + 5/100)² - P

CI = P (105/100)² - P

CI = P (11025/10000) - P

CI = P(1.1025) - P

CI = 0.1025 P

Difference = CI - SI

Substitute the values,

40 = 0.1025P - P/10

40 = 0.1025P - 0.1P

40 = 0.0025P

P = 40/0.0025

P = 16000

Therefore, the sum is 16000.

Answer 2

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