Question

116. A sum amounts to 37,632 at the end of two
years at 12% per annum compound interest,
interest compounded annually. What will be
the simple interest on the same sum at the same
rate for double the earlier period ?
(1) * 7,200
(2) 8,000
(3) 14,400
(4) 16,000​

Answer 1

Answer:

(3) 14,400

Step-by-step explanation:

Here, Amount, A = 37,632

Rate of interest, R= 12% p.a. (interest compounded annually)

Time, n= 2 years.

principal P= ?( to be calculated)

Putting these values in the formula

A = P(1+R/100)^n

37632=P(1+12/100)²

37632= P(112/100)²

37632=P(12544/10000)

P = 37632×(10000/12544)= 30000.

So, we have P = 30,000, R= 12% p.a. and n= 4 years

Now, Simple interest, S.I. = 30000×12×5×1/100= 14400

Hence the simple interest will be Rs. 14,400 (Ans).