Question

If the difference between the compound interest and the simple interest on a certain sum of
money at 5% pa after 2 years is Rs.1.5; find the compound interest obtained on the same sum
at double the rate after 2..5 years; the interest being compounded annually.

Answer 1

Answer:

At first we find the simple interest

SI = P×R×T÷100

P=1.5

R=5%

T=2yrs

SI=1.5×2×5÷100=0.5

let us find the Compound interest

CI=p{(1+r÷100) -1}

P=1.5

R=10%

T=2.5yrs

CI=1.5{(1+10÷100) -1}=?