Question

If the SI on a sum at 4% pa for 2 years is rs 80, then CI on the sum for the same period is

Answer 1

SI=p*t*r/(100)
(80*100)/t*r=p
8000/(2*4)=p
p=8000/8
p=1000

CI=p[(1+r/100)^t-1]
=1000*[(1+4/100)^2-1]
=1000*[1.0816-1]
=1000*0.0816
=81.6