Question
The difference between compound and simple interest on a
sum of money for 2 years at 20% per annum is Rs. 987. The sum is:Solution
Difference of compound interest and simple interest for 2 years = P(R/100)2 = P (20/100)2 ⇒ 987 = P (1/25) ⇒ P = 987 × 25 = Rs. 24,675
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