Question

find the compound interest at the rate 10 % per annum for 4 years on the principle for which in 4 years at the rate of 4 % per annum gives RS 1600 as simple interest

Answer 1

Find Principal amount:

P x 0.04 x 4 = 1600

P = 1600/0.16 = 10000

Find Compound Interest:

A = P x (1 + 0.10) ^ 4 = 14641

Compound Interest = 14641 - 10000 = 4641