the difference between compound interest and simple interest on a certain principle for 2 years at rate of 4%per annum is Rs 150 . Find the principle​

  • matematika

    Subject:

    Math
  • Author:

    kai69
  • Created:

    1 year ago

Answers 2

Step-by-step explanation:

difference = P × ( r/100)^2

150 = P × (4/100)^2

P *= 150 × 625

= 93,750

We first find the simple interest and compound interest assuming the principal to be Rs. x. Then, find the difference between S.I. and C.I. Taking this difference for Rs. x we can find the principal.

Let the principal P=Rs. x,R=4% and N=2 years.

Simple interest,

I=

100

P×N×R

=

100

x×2×4

=Rs.

100

8x

Now compound interest is

A=P(1+

100

R

)

n

=x(1+

100

4

)

2

=x(1.04)

2

=(1.0816)x Rs.

Hence the compound interest =1.0816x−x=0.0816x.

Now, C.I. - S.I. =0.0816x−

100

8x

=

100

8.16x−8x

=

100

0.16x

The difference in CI and SI is Rs. 0.16 when the principal is Rs. x.

But the difference is Rs. 36 then the principal is x=

0.16

100

×36=22,500. Thus the principal is Rs. 22,500

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