Question

what is the sum of money on which difference between the compound interest and the simple interest in 2 years in rs15 at interest of 5%pa​

Answer 1

The sum is Rs 800

Step-by-step explanation:

Compound Interest, CI and Simple interest, SI

Let sum be P

Difference between the compound interest and the simple interest

CI - SI = 2

Time, t = 2

Rate, r = 5% PA

Formula:-

$CI=P(1+r)^t-P$

$SI=Prt$

$P(1+r)^t-P-Prt=2$

$P(1+0.05)^2-P-P\times 0.05\times 2=2$

$1.05^2P-P-0.1P=2$

$0.0025P=2$

$P=800$

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