Question

The difference between C.I. and S.I. for $2$ years at $5\%$ per annum is $Rs.2.50$. Find the sum.

Answer 1

$Difference=Principal\times {\left(\frac{Rate}{100}\right)}^2$
$2.5=P\times {\left(\frac{5}{100}\right)}^2$
$2.5=P\times \frac{5}{100}\times \frac{5}{100}$
$P=\frac{2.5\times 100\times 100}{5\times 5}$
$P=Rs.1000$