# The difference between the compound interest and simple interest on a certain sum for 2 years at 6% per annum is rs 27. The sum is

Dear Student,

let the sum be P = Rs. 100.

time T = 2 years, rate of interest R = 6% per annum

simple interest =

compound amount=

therefore the compound interest = compound amount - principal

=112.36-100=12.36/-

the difference between the compound interest and simple interest = 12.36-12.00 = 0.36/-

if the difference between the CI and SI is Rs. 0.36 the principal = Rs. 100

if the difference between the CI and SI is Rs. 27, the principal = $\frac{100}{0.36}×27=7500$

thus the sum is Rs. 7500.

Regards

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Compound interest versus simple interest. ... The interest, typically expressed as a percentage, can be either simple or compounded. Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period.
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