Question

calculate the simple interest and compound interest on 100000 at 10% per annum for 5 consecutive years​

Answer 1

Answer:

Simple interest = 50,000 Rs

Compound interest = 61,051 Rs

Step-by-step explanation:

Given that-

Principal amount (P) = 100,000 Rs

Rate (r) = 10%

Time (n) = 5 years

Simple interest =?

Compound interest =?

We know that-

$I = \dfrac{P \times r \times n}{100}$

Where I is interest.

P is principal amount.

r is rate.

and n is time.

So, $I = \dfrac{100000 \times 10 \times 5}{100}$

$I = \dfrac{5000000}{100}$

I = 50,000 Rs

Simple interest = 50,000 Rs

Compound interest =?

We know that-

$Compound \ addition (A) = P[1+\dfrac{r}{100} ]^{n}$

So, $A = 100000[1+\dfrac{10}{100} ]^{5}$

$A = 100000[1+0.1]^{5}$

$A = 100000[1.01]^{5}$

$A = 100000 \times 1.61051$

A = 161,051 Rs

Compound interest = A - P

                                = 161,051 - 100,000

Compound interest = 61,051 Rs