Question

5. The simple interest on a sum of money for 2 years at 12% per annum is 14400. What
will be the compound interest on that sum at the same rate and for the same time?
6. In how many years will the compound interest on 10000 be 2597.12 at 8% per annum?

pls say ​

Answer 1

Step-by-step explanation:

It is given that

Simple Interest (SI) = 1380

Rate of interest (R) = 12% p.a.

Period(T)= 2 years

(i) We know that

Sum(P) = (SI×100)/(R×T)

Substituting the values

=(1380×100)/(12×2)

= 5750

(ii) Here

Principal (P)= 5750

Rate of interest (R)= 12% p.a or 6% half- yearly

Period (n) = 1 year - 2 half years

So we get

Amount (A)= P(1 + R/100)

Substituting the values

=5750(1+6/100)

2

By further calculation

= 5750×(53/50)

2

So we get

=5750×53/50×53/50

= 6460.70

Here

Compound interest = A- P

Substituting the values

= 6460.70−5750

= 710.70