Question

what is the relation between ci and siof rs 100 at the rate of 5% p.a for 1 year compounded yearly.
please solve asap

Answer 1

Answer:

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

=

5

P

=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