Question

17. The simple interest on a certain sum of money
at 10% per annum is 6,000 in 2 years.
Find :
(1) the sum.
(ii) the amount due at the end of 3 years and
at the same rate of interest compounded
annually.
(iii) the compound interest earned in 3 years.

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Answer 1

Answer:

i) P = 30,000

ii) Amount = 39,930

iii) CI = 9,930

Step-by-step explanation:

Rate of Interest (r): 10% = 0.1

Time (t): 2

Simple Interest (SI): 6000

i) Principle Amount (P): ?

SI = (P*r*t)/100

P = (SI * 100)/(r*t)

P = 600,000/20

P = 30,000

ii) Amount (CI): ?

Amount = P(1 + r)^(t)

Amount = 30,000(1 + 0.1)^3

Amount = 30,000(1.1)^3

Amount = 30,000 * 1.331

Amount = 30 * 1331

Amount = 39,930

iii) Compound Interest (CI): ?

CI = Amount - Principle

CI = 39,930 - 30,000

CI = 9,930