1.

The difference between compound interest and simple interest of a certain sum of money at 20% per annum for 2 years is Rs. 58. Then the sum is1). Rs. 1,0002). Rs. 1,4503). Rs. 1,5504). Rs. 2,000

Answer»

⇒ Let, Principal be Rs. x simple interest = S.I, compound interest = C.I Rate = 20% and TIME (N) = 2 years.

⇒ Principal + C.I = AMOUNT

⇒ Amount = P × [1+ (r/100)] n

⇒ Amount = x × [1 + (20/100)]2

⇒ Amount = (36x/25)

⇒ C.I = (36x/25) - x

⇒ C.I = (11X/25) ------ 1

⇒ S.I = (P × R × T)/100

⇒ S.I = (x × 20 × 2)/100

⇒ S.I = 2x/5 ------ 2

⇒ Given C.I - S.I = 58

PUTTING the value of C.I and S.I from 1 and 2 we have

⇒ (11x/25) - (2x/5) = 58

⇒ 11x - 10x = 58 × 25

∴ x = Rs. 1450


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