Question
The excess of compound interest (annual compounding)
over simple interest on a principal for 2 years at 10% p.a. is Rs. 200. Find the principal.Solution
ATQ,
let the sum = Rs. x x(1 + 10/100)Β² β x β x Γ 10% Γ 2 = 200 121x/100 β x β x/5 = 200 (121x/100 β 100x/100) β 20x/100 = 200 x/100 = 200 x = Rs. 20000
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