Question

(a) A certain sum of money, invested for 5 years at 8% p.a. simple interest, earns an
interest of 12,000. Find:
(i) the sum of money.
the compound interest earned by this money in two years at 10% p.a.
compound interest.​

Answer 1

Answer:

(i) Rs. 30000

(ii) Rs. 6300

Step-by-step explanation:

(i) SI=(P*R*T)/100

12000*100=P*8*5

P=1200000/40

P=Rs. 30000

(ii) Amount= P*(1+(R/100))^T

=30000*(1+(10/100))^2

=30000*(1+1/10)^2=30000*(11/10)^2

=30000*121/100=300*121=Rs. 36300

Therefore,

CI=A-P

=36300-30000

=Rs. 6300