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| 1. |
The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs 1. Find the sum. |
| Answer» RS. 625Step-by-step EXPLANATION:LET the SUM be Rs. PR = 4 %T = 2 yearsSI = (P×R×T) / 100 ⇒ (P×4×2) / 100 ⇒ 2P / 25CI = P((1+R/100)² - 1) ⇒ P ((1+4/100)² -1) ⇒ P((1+1/25)²-1) ⇒ P((26/25)²-1) ⇒ P((676/625)-1) ⇒ P(51/625) ⇒ 51P/625Now, CI - SI = 1⇒ 51P/625 - 2P / 25 = 1 ⇒ 51P - 50P/625 = 1⇒P/625 = 1∴ P = ₹ 625 | |