Numerical answer
A sum of money is invested for 2 years at 10% per annum. The difference between the compound interest and the simple interest earned is ₹210. Find the sum invested.
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Answer: 21000
For 2 years, CI − SI = P(r/100)². Here r = 10, so (r/100)² = 0.01. Thus P × 0.01 = 210, giving P = 21000. Check: SI = 21000×0.10×2 = 4200. CI = 21000×(1.1² − 1) = 21000×0.21 = 4410. Difference = 4410 − 4200 = 210, which matches.
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