Question

COMPOUND INTEREST
151
40. The difference between the compound interest and the simple interest on 42000 for two
years is * 105 at the same rate of interest per annum. Find :
(i) the rate of interest, (ii) the compound interest earned in the second year.​

Answer 1

Answer:

(i) 5%

(ii) Rs. 4305

Step-by-step explanation:

(i) Difference between SI & CI for 2 years = Pr^2/100^2

105 = 42000 × r^2/ 100 × 100

r^2 = 25

r = 5%

(ii) A = P (1 + r/100)^n

= 42000 (1 + 5/100)^2

A = 46305

CI = A - P

46305 - 42000

CI = Rs. 4305