2. For how many years a person will have to pay the compound interest of 40.80 on 500 at 4% per annum
Answers
Answer:
ans is x
Step-by-step explanation:
x is ans and I czv
Compound interest =40.80 rupees
N=2 years
Simple interest =40 rupees N=2 years
What Is the sum?
Simple interest I = P NR /100
Compound interest = A ( p+ r/100)^n
Difference in interest = 40.80 -40= 0.80
Intrests amount for first year for S I and C I are same
Interest for 1 year = simple interest 20rupees
Com.pound interest =20rupees
2nd year principal amount of S I = pA + interest amount of the previous year (20rupees)
2nd year principal amount C I = 1st year P A + interest of the previous year =(20.)
Interest rate for 1 year = 0.80./ 20 ×100
=80/100 ×1/20 ×100 =4 %
Calculation of Principal amount:
Interest =40rupees
No of years =2
Interest rate 4%
P=?
40 =P×2 × 4/100
P= 40×100/8 =500
Principal amount = =500rupees
Verification
Simple intrest
I =500×2 ×4/100 =40 rupees
Compound interest
Compound Amount( A) = P(1+r/100)^n
=500 (1+4/100)^2 = 500 × 26/25 ×26/25
= 540.80 ps
COMPOUND INTERST = A --P = 540.80 --500 = 40.80