Question

The difference between the compound interest, compounded annually and the simple interest on a
certain sum for 2 years at 11 % per annum is Rs.484. Find the sum.

Answer 1

CI = A - P
= P(1 + r/100)^t - P
=P(111/100)^2 - 1)
=P(12321/10000 - 1)
=2321/10000P

SI = P * r * t/100
= P * 11 * 2/100
=11/50P

CI - SI = 484
2321/1000P - 11/50P = 484
121/1000P = 484
P = Rs2000