Question

2. The difference between the compound interest and the simple interest on 42000 for
years is 105 at the same rate of interest per annum. Find
(1) the rate of interest (ii) the compound interest earned in second year.​

Answer 1

Answer:

Rate of interest is 25%

CI earned in 2nd yr is 13125

Step-by-step explanation:

(i) CI-SI for 2yr is given by P(R/100)^2

given,Principal is 42000

also given difference of CI and SI is 105 for 2yr

105=(42000)×(R/100)^2

R=25% is rate of interest

(ii) 42000×25%=10,500 is CI for first year..Principal for next year is 42000+10500=52,500

52500×25%=13125 is CI for 2nd yr

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