Question
On a certain sum, the difference between compound
interest and simple interest for 2 years at 5% per annum is Rs 50. Find the sum.Solution
For 2 years, difference (CI − SI) on principal P at rate r% is: Difference = P × (r/100)² Here r = 5%: Difference = P × (5/100)² = P × 25/10000 = P/400 Given: P/400 = 50 ⇒ P = 50 × 400 = Rs 20,000
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