The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs 1. Find the sum
Rs 600
Rs 625
Rs 650
Rs 675
Explanation:
Let the Sum be P
S.I. = P∗4∗2/100=2P/25
C.I. = P(1+4/100)^2−P
=(676P/625)−P
=51P/625
As, C.I. - S.I = 1
=>51P/625−2P/25=1
=>(51P−50P)625=1
P=625
Let the Sum be P
S.I. = P∗4∗2/100=2P/25
C.I. = P(1+4/100)^2−P
=(676P/625)−P
=51P/625
As, C.I. - S.I = 1
=>51P/625−2P/25=1
=>(51P−50P)625=1
P=625