Subject :IMO Class : Class 8
The difference between the compound interest and simple interest on a certain sum of money at 10% per annum for 2 years is ₹ 500. Find the sum when the interest is compounded annually.
A ₹ 50000
B ₹ 55000
C ₹ 40000
D ₹ 65000
b
Ans 1:
Class : Class 8
Ans 2:
Class : Class 9
Let the sum be x.
Compound interest:
P(1+r/100)^n-P
=x(11/10)^2-x
Taking x common,
x[(121/100)-1]
=21x/100
Simple interest:p*r*t/100
=x*10*2/100
=x/5
Compound interest - simple interest =500
21x/100-x/5=500
x/100=500
x=50000