Calculate simple and compont interest for the 4000 for 5 years at the rate of 6% per annum
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Answer:
For Simple interest,
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We have Given that,
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Principal=rs 4000
time=5 years
rate=6%per annum
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To find: Simple interest
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Simple interest=principal×rate×time/100
=4000×5×6/100
Cancelling 2 zero by 2 zero
now, 40×5×6
=200×6
=1200
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Simple interest=rs 1200
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Now,For Compound interest
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we have Given that,
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principal=rs 4000
time(n)=5years
rate(r)=6% p.a
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A=P(1+r/100)^5
=4000(1+6/100)^6
=4000×(106/100)^
=4000×53/50^6
=4240×53/50^5
=5674.076
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CI=Amount-Principal
=5674.076-4000
=1674.076
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