An amount at the rate of 5% pa becomes ₹ 10 more at compound interest than that of simple interest after 2 yr. Calculate the principal.

Question

Accepted Answer

Here, CI - SI = 10, R = 5%, n = 2 yr and P = ? According to the formula, CI - SI = PR2/1002 ⇒ 10 = (P x 25)/10000 ∴ P = (400 x 10) = ₹ 4000

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