the difference of simple and compound interest is Rs 4 at 4% for 2 years. find the sum
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The answer is Rs 2500.
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S.I for 2 years = P*R*T/100 = P*4*2/100 = 2*P/25
C.I for 2 years = P[1 + r/100)^n] - P = P[1 + 4/100]^2 - P
= P[1 + 1/25]^2 - P
= P[676/625] - P = P*51/625
C.I - S.I = 4
4 = P*51/625 - 2*P/25 = 51P - 50P/625 = P/625
P = 625*4 = 2500
Hence sum = Rs.2500
Hope it helps.
C.I for 2 years = P[1 + r/100)^n] - P = P[1 + 4/100]^2 - P
= P[1 + 1/25]^2 - P
= P[676/625] - P = P*51/625
C.I - S.I = 4
4 = P*51/625 - 2*P/25 = 51P - 50P/625 = P/625
P = 625*4 = 2500
Hence sum = Rs.2500
Hope it helps.
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