Question

The difference in simple interest and compound interest on a certain sum of money in 2 years at 10 % p.a. is Rs. 50. The sum is

Answer 1

Answer: 5000

Step-by-step explanation:

S.I = PTR/100

S.I = Px2x10/100 = P/5

A = P(1+r/100)^n

A = P(1+10/100)^2

A = 121P/100

C.I = A-P

C.I = 121P/100 - P

C.I = 21P/100

According to question:

C.I - S.I = 50

21P/100 - P/5 = 50

p = 5000