The Difference Between The Compound And Simple Interest On A Certain

1.	The Difference Between The Compound And Simple Interest On A Certain Sum For 2 Years At The Rate Of 8% Per Annum Is Rs.80,what Is The Sum?
Answer» Since we know that SI and CI are same for FIRST year. DIFFERENCE is due to the SI of 1st year is treated as PRINCIPLE of 2nd year in CI. So 1st we calculate the amount which treated as P in CI P = 100SI/RT = 10080/81 = 1000 This amount is also the SI for 1 year. So SI = 1000 T = 1 Year R = 8% P = 1001000/81 = 12500 Since we know that SI and CI are same for first year. Difference is due to the SI of 1st year is treated as PRINCIPLE of 2nd year in CI. So 1st we calculate the amount which treated as P in CI P = 100SI/RT = 10080/81 = 1000 This amount is also the SI for 1 year. So SI = 1000 T = 1 Year R = 8% P = 1001000/81 = 12500

The Difference Between The Compound And Simple Interest On A Certain Sum For 2 Years At The Rate Of 8% Per Annum Is Rs.80,what Is The Sum?

Answer»

Since we know that SI and CI are same for FIRST year. DIFFERENCE is due to the SI of 1st year is treated as PRINCIPLE of 2nd year in CI.

So 1st we calculate the amount which treated as P in CI

P = 100*SI/R*T = 100*80/8*1 = 1000

This amount is also the SI for 1 year.

SI = 1000

T = 1 Year

R = 8%

P = 100*1000/8*1 = 12500