If the difference between the compound interest and simple interest on a sum of money for 2 years at 10% per annum is $50, what is the principal? (2000)
Practice Questions
1 question
Q1
If the difference between the compound interest and simple interest on a sum of money for 2 years at 10% per annum is $50, what is the principal? (2000)
$1000
$1200
$1500
$2000
The difference SI and CI for 2 years is given by P * r^2 / 200. Setting this equal to 50 gives P = $1500.
Questions & Step-by-step Solutions
1 item
Q
Q: If the difference between the compound interest and simple interest on a sum of money for 2 years at 10% per annum is $50, what is the principal? (2000)
Solution: The difference SI and CI for 2 years is given by P * r^2 / 200. Setting this equal to 50 gives P = $1500.
