Question

If the Simple Interest earned on a
certain sum of money at 6% per
annum for 2 years is Rs.700, find the
Compound Interest earned on the
same sum of money at the same rate
for 2 years?​

Answer 1

Step-by-step explanation:

p=700

r=6%

t=2 years.

formulae of C.I = [P*{1+R/100}^T] - P

PUTTING VALUES IN THE FORMULAE ;

[700*{1+6/100}^2]-700.

solving the equation

[700*{106/100}^2 ]-700.

[700*11236/10000]-700.  (square of 106=11236, 100= 10000)

[7*11236/100]-700.    

cancellation of two zeros of 700 from zeros of 10000

now, multiplying 7 and 11236. we get

78,652/100 - 700.

786.52-700.

86.52.

hence C.I = 86.52.