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)² – x – x × 10% × 2 = 200 121x/100 – x – x/5 = 200 (121x/100 – 100x/100) – 20x/100 = 200 x/100 = 200 x = Rs. 20000
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