difference between simple interest and compound interest at the rate of 10% for 2 years on an amount is ra 20 find the principal v

1 thought on “difference between simple interest and compound interest at the rate of 10% for 2 years on an amount is ra 20 find the principal v”

1. Step-by-step explanation:

   The difference between the simple interset and compound interest on a certain sum of money ‘P’ for 2 years at r% per annum is given by :

   ⇒(CI−SI)

   2year

   =

   100

   2

   Pr

   2

   Using the above formula for a sum of money ‘P’ invested for two years at 4% p.a., given that the difference between CI&SI is Rs.20

   ∴20=

   100

   2

   P(4)

   2

   ⇒20=

   100×100

   P(4×4)

   ⇒5×25×100=P

   ⇒P=Rs.12500

   Hence, the answer is Rs.12500.

   Reply