Reena borrowed from Kamila certain sum for two years at simple interest Reena lent this to Hamin at the same rate for two years compound interest At the end of two years she received Rs 110 as compound interest but paid Rs 100 as simple interest Find the sum and rate of interest

The difference between compound interest and simple interest for two years can be found using the formula difference equals P times R squared divided by 10000. Substituting the difference of 110 minus 100, which is 10, we get 10 equals P times R squared divided by 10000. The simple interest formula gives 100 equals P times R times 2 divided by 100, meaning P times R equals 5000. Solving these two equations, P times R squared equals 100000, so dividing by P times R equals 5000 gives R equals 20 percent, and substituting R back gives P equals Rs. 250. The sum and rate of interest are Rs. 250 and 20%.

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