Question

if a sum is lent at 5% compound interest per annum for 2 year.what is the ratio of the amount to the principal?
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Answer 1

Step-by-step explanation:

Principal for the first year = Rs. 20,000, rate = 5%, T = 1 year.

Interest for the first year =

100

20,000×1×5

=Rs.1,000 (using simple interest formula I=

100

P×T

1

×R

).

Principal for the second year = Rs. 20,000+1,000=Rs. 21,000.

Interest for the second year =

100

21,000×5

=Rs.1,050

Amount after 2 years = Rs. 21000 + 1050 = Rs. 22,050.

Compound interest = amount - principal = Rs. 22,050 - Rs. 20,000 = Rs. 2,050.

Hence the compound interest after 2 years is Rs. 2,050.

Simple interest on Rs. 20,000 for 2 years at the rate of 5% is

I=

100

20000×2×5

=Rs.2,000.

Answer 2

Answer:

I don't know , what will you do