Question

The difference between simple interest and compound interest on a certain sum is Rs. 54.40 for 2 years at 8 per cent annum. Find the sum.

Answer 1

Lets principle amount is X
So simple intrest fo two year =$\frac{8\times 2\times X}{100}=\frac{16X}{100}$
And C.A on X amt =$X{\left\{\frac{108}{100}\right\}}^2=\frac{11664X}{10000}=\frac{2916}{2500}$
C.I =$\frac{2916}{2500}$-X
Diff of C.I and S.I =$\frac{2916}{2500}$-X-$\frac{16x}{100}$=54.40
so X = 8500