Question
The difference between compound and simple interest on a
sum of money for 2 years at 2% per annum is Rs. 122. The sum is:Solution
Difference of compound interest and simple interest for 2 years = P(R/100)2 = P (2/100)2 ⇒ 122 = P (1/2500) ⇒ P = 122 × 2500 = Rs. 3,05,000
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