21. The difference between the compound interest and the simple interest on RS 28000 for years Rs 70 at the same rate of interest per annum
compound interest and the simple interest on Rs 28,000 for 2 years is
(1) What is the rate of interest?
2 calculate the interest earned in the second year under compound interest.
Answers
Answer: 5%, 1470
Step-by-step explanation:
(i)Given: P = 28000, Time = 2 years, Difference = 70.
Let the rate of interest be R%.
⇒ [28000(1 + R/100)² - 28000] - [28000 * R * 2/100] = 70
⇒ 28000[(100 + R)²/10000 - 1 - 2R/100] = 70
⇒ 28000[(100 + R)² - 10000 - 200R/10000] = 70
⇒ 14R²/5 = 70
⇒ 14R² = 350
⇒ R² = 25
⇒ R = 5.
∴ Rate = 5%
(OR)
Difference between SI and CI = PR²/(100)²
⇒ 70 = 28000 * R²/10000
⇒ 700000 = 28000 * R²
⇒ R = 5%
Therefore, Rate = 5%
(ii)Compound interest for the 1st year:
= (28000 * 5)/100
= 1400
Amount for the first year = 28000 + 1400 = 29400.
Compound Interest for the second year:
= (29400 * 5 * 1)/100
= 1470
Therefore, Compound Interest for the 2nd year = 1470.
Hope it helps!
Please mark me as brainlist.
Answer:
Calculating Compound Interest. Find the Simple Interest (S.I.) for one year. Let the principal for the first year be P1. Then find the amount which will be paid or received. Again find the interest on this sum for another year. Find the amount which has to be paid or received at the end of second year.