Question

If the rate of interest is 6 p.c.p.a the principal is 29863 and the time period is 1 year then what is the interest on this condition.​

Answer 1

Step-by-step explanation:

let 

PP

 be the principal amount, 

II

 be the simple interest and 

RR

 be the rate of interest per annum. Given in 5 years of time i.e., 

T=5T=5

 the final amount gets doubled the principal amount. So, the final amount is 

2P2P

.

We know that simple interest = final amount – principal amount = 

2P−P=P2P−P=P

. So, 

I=PI=P

.

We know that 

I=P×T×R100I=P×T×R100

By substituting the above data, we have

⇒P=P×5×R100⇒1005=R∴R=20⇒P=P×5×R100⇒1005=R∴R=20

Thus, the rate of interest percent compounded per annum is 20.

II. Given the difference between the compound interest and the simple interest earned in two years on a certain amount is Rs.400. So, time period = 2 years.

We know that the compound interest is given by the formula 

C=[P(1+R100)T−P]C=[P(1+R100)T−P].