Question

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

Answer 1

Answer:

Let the value of the sum be P.

First let us calculate simple interest obtained in the period of 2 years at rate of 10% per year,

S.I

= 100

P⋅R⋅T

= 100

P⋅10⋅2

= 5P

=0.2P

Now we will calculate the compound interest gained in the period of 2 years compounded annually at the rate of 10%,

C.I=A−P

=P(1+r) t

−P

=P((1+0.1)

2

−1)

=P((1.1)

2

−1

2

)

=P(1.1+1)(1.1−1)

=P(2.1)(0.1)

=0.21P

Now it is given that the difference between C.I and S.I is equal to Rs. 50. So,

C.I−S.I

0.21P−0.2P

0.01P

P

=50

=50

=50

=Rs. 5000

So, the sum is equal to Rs. 5000.

Step-by-step explanation:

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