Question

The difference between the compound interest compounded annually and the simple interest on a certain sum $2$ years at $6\%$ per annum is $Rs.18$. Find the sum

Answer 1

$C.I.-S.I.=18$

$(P{(1+\frac{R}{100})}^n-P)-\left(\frac{P\times R\times n}{100}\right)=18$

Given:-

$P=?$

$R=6\%$

$n=2\text{years}$

$P{(1+\frac{6}{100})}^2-P-\frac{P\times 6\times 2}{100}=18$

$P{\left(\frac{106}{100}\right)}^2-P-\frac{3P}{25}=18$

$1.1236P-P-0.12P=18$

$0.0036P=18$

$P=\frac{18}{0.0036}=5000$