The difference between CI and SI on a sum of money lent for 2 years
Posted on 01-05-2023
Ques - The difference between CI and SI on a sum of money lent for 2 years at 10% is Rs. 40. The sum is :
(a) 1600
(b) 2000
(c) 4000
(d) none of these
Solution -
Let,
P = 100x
SI = (100×R×T) / 100
SI = (100×10×2) / 100)
SI = 20x
And,
A = 100x (1 + (r/100))n
A = 100x (1 + (10/100))2
A = 100x (110/100)2
A = 100x (12100/10000)
A = 121x
CI = A - P
CI = 121x - 100x
CI = 21x
Now,
The difference between CI and SI on a sum of money lent for 2 years at 10% is Rs. 40.
CI - SI = 40
21x - 20x = 40
x = 40
So,
P = 100x
P = 100 × 40
P = 4000
Therefore,
The sum is 4000.
Hence,
The correct answer is option (c) 4000.
Thank You