If difference between compound and simple interest for 2 years at 5%Pa is RS 12 Find the sum borrowed

 

Asked by js8428521 | 1st Dec, 2019, 07:50: PM

Expert Answer:

Let P be the sum borrowed.
n = 2 years and r = 5% p.a.
 
According to the question,
CI - SI = 12
P(1 + r)n - P - Pnr/100 = 12
P[(1 + r)n - 1 - 2r/100] = 12
P[1.052 - 1 - 2 × 5/100] = 12
P × 0.0025 = 12
P = Rs. 4800

Answered by Sneha shidid | 2nd Dec, 2019, 09:26: AM