Brijesh borrowed a sum of ` 2000 at 2% per month simple interest on a yearly basis. it was decided that if the sum would not be returned at the end of the year interest would be charged on the fixed interest. if the sum was returned after two years then how much did brijesh pay?
Answers
simple interest is 2000*2(rate of interest per month)*24(number of months for which money is borrowed)/100=rupees 960.
amount=simple interest+principle=960+2000=2960 rupees
Answer:
3075.2
Step-by-step explanation:
P=2000;
SR(rate of Interest for SI)=2%;
SI p.a=2*12=24% (which is also equal to CI p.a)
now we calculate CI per 2 years (as it is mentioned in the question "it was decided that if the sum would not be returned at the end of the year interest would be charged on the fixed interest" which is nothing but Compound Interest) we can calculate it using formula as follows:
CI=P{((1+R/100)^T )-1}
where P=2000, R(rate of interest for CI) p.a=24%,T=2years
CI=2000{ (1+24/100)^2) -1}
=2000{(124/100)^2 -1}
=2000{( 31/25)^2 -1}
=2000{( 961/625) -1}
=2000{1.5376 -1}
=2000{0.5376}
=3075-2000
=1075.2
CI per 2 years=1075.2
Total amount Brijesh pay after 2 years=P+CI=2000+1075.2=3075.2