Arithmetichard · Past Paper

The difference between SI and CI for 2 years at 5% p.a. is Rs 2.50. Find the sum.

ARs 1000
BRs 1200
CRs 800
DRs 1500

✓ Correct Answer: ARs 1000

Difference = P(R/100)^2 => 2.5 = P(5/100)^2 => 2.5 = P(0.0025) => P = 1000.

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