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.
Answers
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7
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
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