on what sum of money will the difference between the simple interest and compound interest for 2 years at 5% per annum to be equal to rupees 50
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on what sum of money will the difference between the simple interest and compound interest for 2 years at 5% per annum to be equal to rupees 50
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Answer:
For ,
N=2years
R=5 %
We have S.I.= 100/PNR
= 100/P×2×5
= 100/10P
=0.1P
And on interest being compounded for 2 years and R=5 %,
Amount=P(1 + 100/R)N
=P(1 + 100/5)2
=P×(1.05)2
=1.1025P
So, C.I.=A−P
=1.1025P−P
=0.1025P
Given, C.I.−S.I=Rs50
=>0.1025P−0.1P=Rs50
=>0.0025P=Rs50
=>P=RS20,000 -- ANS