Question 124

On what sum of money will the difference between S.I and C.I for 2 years at 5% per annum be equal to 25 ?

Solution

Let sum of money = $$100x$$

rate = 5%, time = 2 years

=> S.I. = $$\frac{100x * 5 * 2}{100} = 10x$$

=> C.I. = $$100x(1 + \frac{5}{100})^{2} - 100x$$

= $$100x(\frac{441}{400} - 1)$$

= $$100x(\frac{41}{400})$$ = $$\frac{41x}{4}$$

Required difference = $$\frac{41x}{4} - 10x$$ = 25

= $$\frac{x}{4}$$ = 25 => $$x$$ = 100

=> Sum = 100*100 = 10,000

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