Question

The simple and compound intrest on a certain of sum for 2 years are respectively rs. 40 and rs. 41 . Find the rate and the sum?

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Answer 1

SI for 2 years=40

THUS,SI for 1 year=40/2=20

As for the first year CI and SI are always same so,

CI for first year=20

give that CI for 2 years is 41;

So CI for second year =41-20=21

Difference in CI for two successive years=21-20=1

so;

1 is the interest for one year on the interest of first year,that is,on rupees 20;

thus,

rate=(100*I)/(P*T)

=(100*1)/(20*1)

=5 percent

therefore; the rate is 5% per annum.

Hope i helped!!