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Find the sum of money on which the difference between the compound interest (compounded annually) and the simple interest at the same rate of 5% per annum after 2 years is Rs. 10?
- a)Rs. 1000
- b)Rs. 2000
- c)Rs. 3000
- d)Rs. 4000
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
Find the sum of money on which the difference between the compound int...
Let the sum of money be Rs. ‘P’
Given, CI – SI = 10
⇒ P[(1 + Rate/100)Time – 1] – [(P × Rate × Time)/100] = 10
⇒ P[(1 + 5/100)2) – 1] – [(P × 5 × 2)/100] = 10
⇒ P[(1.05)2 – 1] – 0.1P = 10
⇒ 0.1025P – 0.1P = 10
⇒ 0.0025P = 10
⇒ P = 10/0.0025 = 4000
∴ Required sum = Rs. 4000
Most Upvoted Answer
Find the sum of money on which the difference between the compound int...
Given:
- Rate of interest = 5% per annum
- Time = 2 years
- Difference between compound interest and simple interest = Rs. 10
To find:
The principal sum of money on which the difference between compound interest and simple interest is Rs. 10.
Solution:
Let the principal sum of money be P.
The formula for compound interest is given by:
Compound Interest = P(1 + r/n)^(nt) - P
where P is the principal sum of money, r is the rate of interest, n is the number of times interest is compounded per year, and t is the time in years.
The formula for simple interest is given by:
Simple Interest = P * r * t
where P is the principal sum of money, r is the rate of interest, and t is the time in years.
Given that the difference between compound interest and simple interest is Rs. 10, we can write the equation as:
P(1 + r/n)^(nt) - P - P * r * t = 10
Substituting the given values, we get:
P(1 + 0.05/1)^(1*2) - P - P * 0.05 * 2 = 10
P(1 + 0.05)^2 - P - 0.1P = 10
P(1.05)^2 - P - 0.1P = 10
P(1.1025) - P - 0.1P = 10
1.1025P - P - 0.1P = 10
0.0025P = 10
P = 10 / 0.0025
P = 4000
Therefore, the principal sum of money on which the difference between compound interest and simple interest is Rs. 10 is Rs. 4000.
- Rate of interest = 5% per annum
- Time = 2 years
- Difference between compound interest and simple interest = Rs. 10
To find:
The principal sum of money on which the difference between compound interest and simple interest is Rs. 10.
Solution:
Let the principal sum of money be P.
The formula for compound interest is given by:
Compound Interest = P(1 + r/n)^(nt) - P
where P is the principal sum of money, r is the rate of interest, n is the number of times interest is compounded per year, and t is the time in years.
The formula for simple interest is given by:
Simple Interest = P * r * t
where P is the principal sum of money, r is the rate of interest, and t is the time in years.
Given that the difference between compound interest and simple interest is Rs. 10, we can write the equation as:
P(1 + r/n)^(nt) - P - P * r * t = 10
Substituting the given values, we get:
P(1 + 0.05/1)^(1*2) - P - P * 0.05 * 2 = 10
P(1 + 0.05)^2 - P - 0.1P = 10
P(1.05)^2 - P - 0.1P = 10
P(1.1025) - P - 0.1P = 10
1.1025P - P - 0.1P = 10
0.0025P = 10
P = 10 / 0.0025
P = 4000
Therefore, the principal sum of money on which the difference between compound interest and simple interest is Rs. 10 is Rs. 4000.
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Find the sum of money on which the difference between the compound interest (compounded annually) and the simple interest at the same rate of 5% per annum after 2 years is Rs. 10?a)Rs. 1000b)Rs. 2000c)Rs. 3000d)Rs. 4000Correct answer is option 'D'. Can you explain this answer?
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Find the sum of money on which the difference between the compound interest (compounded annually) and the simple interest at the same rate of 5% per annum after 2 years is Rs. 10?a)Rs. 1000b)Rs. 2000c)Rs. 3000d)Rs. 4000Correct answer is option 'D'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about Find the sum of money on which the difference between the compound interest (compounded annually) and the simple interest at the same rate of 5% per annum after 2 years is Rs. 10?a)Rs. 1000b)Rs. 2000c)Rs. 3000d)Rs. 4000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the sum of money on which the difference between the compound interest (compounded annually) and the simple interest at the same rate of 5% per annum after 2 years is Rs. 10?a)Rs. 1000b)Rs. 2000c)Rs. 3000d)Rs. 4000Correct answer is option 'D'. Can you explain this answer?.
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