Compound Interest Practice Test 2

Question : 8 of 40

Marks: +1, -0

The difference between simple and compound interest on a sum of money at 5% p.a. for 2 years is Rs. 25. Find the sum.

Solution:

Here,

P[(1+5/100)^2-1]-{P×5×2}/100=25

⇒P[441/400-1]-{10P}/100=25

⇒P[41/400-10/100]=25

⇒P×1/400=25

⇒P=25×400=10,000

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