Question

if the simple interest of the sum of the money for 2 years at 5% anum is Rs 50 . What is the compound interest on the same amount at same rate and for same time​

Answer 1

Answer:

Sum of money = 500/-

Compound Interest = 51.25/-

Step-by-step explanation:

Let the sum of money be 'x'

Simple Interest == x*5/100*2 = 50/-

x = 500/-

Compound Interest == 500*5/100 = 25/-

(1st year)

Amount of 1st year = 500+25 = 525/-

2nd year == (500+25)*5/100 = 105/4 = 26.25/-

Amount of 2nd year = 525+26.25 = 551.25/-

Compound Interest = 551.25 - 500 = 51.25/-