Question

Calculate the Compound Interest for the Given Sum
If the simple interest on a sum of money for 2 years at 5% per annum is Rs.50. What is the compound interest on the same sum at the same rate and for the same time?

Answer 1

2*5%=10%----50
=>100%---500=sum
now sum=500, rate=5% time =2y
compund interest
1st year: 25
2nd year 25+ 1.25(5% of 25)
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               51.25    = compound interest ans.
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