If the difference of compound interest and simple interest on certaina

1.	If the difference of compound interest and simple interest on certainamount invested for 2 years at the rate of 2 % per annum is Re. 1, thenlo interest, on certain sumfind the principal.
Answer» Let principle be pSI = Px5/2x2/100SI = P/20 =.05P CI = Amount after two years - P= P(1 + 5/200)^2 - P= P(1 + 1/40)^2 - P= P(41/40)x(41/40) - P= 1.0506P - P=.0506P According to given condition CI - SI = 1.0506P -.05P = 1.0006P = 1P = 10000/6P = 1666.7 ans

If the difference of compound interest and simple interest on certainamount invested for 2 years at the rate of 2 % per annum is Re. 1, thenlo interest, on certain sumfind the principal.

Answer»

Let principle be pSI = Px5/2x2/100SI = P/20 =.05P

CI = Amount after two years - P= P(1 + 5/200)^2 - P= P(1 + 1/40)^2 - P= P(41/40)x(41/40) - P= 1.0506P - P=.0506P

According to given condition

CI - SI = 1.0506P -.05P = 1.0006P = 1P = 10000/6P = 1666.7 ans