Question

7. The simple interest on a certain sum of money for two years at 5=% is 6,600.
2
What will be the compound interest on that sum at the same rate for the same
time period?​

Answer 1

Answer:

What will be the compound interest on the same sum at the same rate for the same period, compounded annually? Solution: Given, SI = $ 6750, R = 203% p.a. and T = 3 years. = $ (100 × 6750 × ³/₂₀ × 1/3 ) = $ 33750.

Best of luck your future

Answer 2

Let the Principal be 100, Rate is 5.5%, Period =2 yrs . Therefore interest is 100×5.5×2/100= Rs.11/-. ( Rs.5.50 per year)

When SI is Rs.5.50 Principal is 100

When SI is Rs.3300/-(6600÷2)

Principal is:

3300 × 100 ÷ 5.50 = Rs.60000/-

For Compound Interest:

First Year Interest is the same as Simple Interest in annual compounding. Here it is 3300/- (1)

For the 2nd year you earn the same first year’s interest + the first year’s interest alsoearns interest .

=> 3300 (1) + 3300 + 181.50 (3300 × 5.5%)

Compound Interest = Rs. 6,781.50