Question

The difference between simple interest and compound interest on a certain sum of money at 20% per annum for 2 years is 48. Find the principle.

Please help

Answer 1

It will be $68.33:

A-I=P(1+r/n)^(nt)-Prt

$48=P{(1+r/n)^(nt)-rt}

p=$48/{(1+.2/1)^(2)-.2*2)= $68.33