The difference between the compound interest and the simple interest on a certain sum at 12% per annum for 2 years, compounded annually, is ₹72. Find the sum. (answer in ₹)

Question

Accepted Answer

5000. For 2 years, difference = P × (R/100)² = P × 0.0144 = 72, so P = 72 / 0.0144 = ₹5000.

The difference between the compound interest and the simple interest on a certain sum at 12% per annum for 2 years, compounded annually, is ₹72. Find the sum. (answer in ₹)

Step-by-Step Solution

Master this topic in 30 minutes a day.

More Simple & Compound Interest practice