Question

Calculate simple and compont interest for the 4000 for 5 years at the rate of 6% per annum

Answer 1

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