Question

c temperature rupees 5000 10% per annum at simple interest for 2 years if targets interest half yearly of compound interest then how much extra amount will she get in her account

Answer 1

Answer:

         Extra Amount that she will get in her Account = 78 Rupees

Step-by-step explanation:

Given that

⇒ For Simple Interest:

Principal Amount = P = 5000

Rate of Interest = i = 10 % = 0.10

Number of Years = n =2

Amount of Interest = nPr

                              = (2)(5000)(0.10) = 1000 Rupess

⇒ For Compound Interest:

Principal Amount = P = 5000

Rate of Interest = i = 10 % = 0.10

Number of Years = 2

For half-yearly or i-annually, we have Time Period = 2(2) = n = 4

So rate of Interest for half-yearly or bi-annually = i = 0.10/2 = 0.05

 Total Amount       = P(1+i)^n

                                = 5000(1+0.0.05)^4

                                =5000(1.2155)

                               = 6078 Rupees

Amount of Interest = Total Amount - Principal Amount

Amount of Interest = 6078 - 5000

Amount of Interest = 1078 Rupees

So

⇒  Simple Interest = 1000

⇒  Compound Interest = 1078

Extra Amount = 1078 - 1000 = 78 Rupees

                           Extra Amount = 78 Rupees