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If the difference between S.I. and C.I. for 2 years on a sum of money lent at 5% per annum is Rs. 6, then the sum is

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To solve the problem, we need to find the principal amount (sum of money) based on the information given about the difference between Simple Interest (SI) and Compound Interest (CI) over 2 years at a rate of 5% per annum. ### Step-by-Step Solution: 1. **Understanding the difference between SI and CI**: The difference between Compound Interest (CI) and Simple Interest (SI) for 2 years can be calculated using the formula: \[ \text{Difference} = \text{CI} - \text{SI} = \frac{P \times r^2}{100^2} \] where \( P \) is the principal amount, and \( r \) is the rate of interest. 2. **Given values**: - The rate of interest \( r = 5\% \) - The difference between CI and SI for 2 years is Rs. 6. 3. **Substituting the values into the formula**: We substitute \( r = 5 \) into the difference formula: \[ 6 = \frac{P \times 5^2}{100^2} \] 4. **Calculating \( 5^2 \) and \( 100^2 \)**: \[ 5^2 = 25 \quad \text{and} \quad 100^2 = 10000 \] Therefore, the equation becomes: \[ 6 = \frac{P \times 25}{10000} \] 5. **Rearranging the equation to solve for \( P \)**: Multiply both sides by 10000 to eliminate the fraction: \[ 6 \times 10000 = P \times 25 \] \[ 60000 = P \times 25 \] 6. **Dividing both sides by 25**: \[ P = \frac{60000}{25} \] \[ P = 2400 \] ### Conclusion: The sum of money (principal amount) is Rs. 2400.
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