On what sum of money will the difference between simple interest and compound interest for 2 years at 5% per annum will be equal to rupees 25?

On what sum of money will the difference between the compound interest and simple interest for 2 years be equal to Rs. 25 if the rate of interest charged for both is 5% p.a.?

C.I = `P[(1 + r/100)^2 - 1] = P[(1 + 5/100)^2 - 1] = "41P"/400`

`S.I = (P xx 5 xx 2)/100 = P/100`

Given, C.I. - S.I. Rs. 25

`=> "41P"/400 - P/10 = 25`

`=> (41P - 40P)/400 = 25`

`=> P = 10000`

∴ Required sum  = Rs. 10,000

Concept: Concept of Compound Interest - Compound Interest as a Repeated Simple Interest Computation with a Growing Principal

  Is there an error in this question or solution?

On what sum of money does the difference between the simple interest and compound interest in 2 years at 5 % is ₹ 15

Open in App

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

No worries! We‘ve got your back. Try BYJU‘S free classes today!

No worries! We‘ve got your back. Try BYJU‘S free classes today!

No worries! We‘ve got your back. Try BYJU‘S free classes today!