Question

The difference between the compound interest and the simple interest on a certain sum of money for 2 yrs @5% p.a is RS.40. Find the sum.

Answer 1

Let the sum of money be P
Si=P×R×T÷100
si=P×10÷100
Si=P÷10
Ci=P×(1+r÷100)n
ci= p×21÷20×21÷20
ci=441p÷400
Now,
Ci-si=441p÷400-p÷10
Ci-Si=401p÷400
A/Q
40=401p÷400
39.90=p