On a certain sum of money,the simple interest | vedclass

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(A) Given:Simple Interest $(SI)$ for $2$ years = ₹ $200$.Rate of interest $(R)$ = $7 \%$ per annum.Time $(T)$ = $2$ years.Step $1$: Calculate the Prin

Vedclass · Accepted Answer

$7$

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(A) Given:Simple Interest $(SI)$ for $2$ years = ₹ $200$.Rate of interest $(R)$ = $7 \%$ per annum.Time $(T)$ = $2$ years.Step $1$: Calculate the Principal $(P)$.$SI = \frac{P 	imes R 	imes T}{100}$$200 = \frac{P 	imes 7 	imes 2}{100}$$200 = \frac{14P}{100}$$P = \frac{20000}{14} = ₹ \frac{10000}{7}$.Step $2$: Calculate the difference between $CI$ and $SI$ for $2$ years.The formula for the difference between $CI$ and $SI$ for $2$ years is:$Difference = P 	imes (\frac{R}{100})^2$$Difference = \frac{10000}{7} 	imes (\frac{7}{100})^2$$Difference = \frac{10000}{7} 	imes \frac{49}{10000}$$Difference = 7$.Alternatively,for $2$ years,$CI - SI = \frac{SI 	imes R}{200} = \frac{200 	imes 7}{200} = 7$.Thus,the difference is ₹ $7$.

On a certain sum of money,the simple interest for $2$ years is ₹ $200$ at the rate of $7 \%$ per annum. Find the difference between compound interest $(CI)$ and simple interest $(SI)$. (In ₹)

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