Question

What sum of money, the difference between simple interest and compound interest for 2 years becomes 80 at 4% interest per annum​

Answer 1

Answer:

SI=

100

P×r×t

⟹80=

100

P×4×2

⟹P=Rs.1,000

CI=P[(1+

100

r

)

n

−1]

CI=1000[(1+

100

4

)

2

−1]=Rs.81.6

Answer 2

Answer:

N=2years

R=5 %

We have S.I.=

100

PNR

=

100

P×2×5

=

100

10P

=0.1P

And on interest being compounded for 2 years and R=5 %, Amount=P(1+

100

R

)

N

=P(1+

100

5

)

2

=P×(1.05

2

)=1.1025P

So, C.I.=A−P=1.1025P−P=0.1025P

Given, C.I.−S.I=Rs50

=>0.1025P−0.1P=Rs50

=>0.0025P=Rs50

=>P=Rs20,000

hope it's helpful for you