Question

The difference of compound interest and simple interest on an amount at the rate of 12% per annum for 2 years is Rs.90, then the amount will be?

Answer 1

difference
$difference = p ( {r}^{2} ) \div ({100}^{2})$

$90 = p ({12}^{2} ) \div ({100}^{2} )$

$90 = p144 \div 10000$
$p = 90 \times 10000 \div 144$
$p = 6250$

Answer 2

hence,the amount is Rs.6250