16. If the CI on a sum of money for 3 years at
the rate of 2% per annum is 306.04, then
what will be the SI?
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Step-by-step explanation:
Compound Interest = Total amount of Principal and Interest in future (or ) less the Principal amount at present called (PV). PV is the current worth of a future sum of money or stream of given a specified .
where P = Principal, i = annual interest rate in percentage terms, and n = number of compounding periods for a year.
P=306.04/[(1+0.02)^3–1]=5000
The formula for calculating simple interest is:
Simple Interest = Principal x Interest Rate x Term of the loan
= P x i x n
Simple Interest = 5000*0.02*3=300
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