Question

If the Simple interest on a sum at 4% per annum for 2 years is Rs 80, then the compound interest on the same sum for the same period is.

Answer 1

Hey there ✌̤✌̤✌̤
ᴜʀ ᴀɴꜱ ɪɴ ʜᴇʀᴇ

●INTEREST = Interest is the price paid by a borrower for the use of a lender's money.

TYPE OF INTEREST----- there are 2 type of interest--
●Simple Interest
●Compound Interest

♥Simple Interest = Simple interest is the computed on the principal for the entire period of borrowing.
Formula -----
I = Pit
A = P + I
I = A - P

here
I = Amount of Interest
P = principal ( initial value of an investment)
A = Accumulated amount ( Final value of an investment)
i = Annual interest rate in decimal
t = time in years

♥Compound Interest = compound interest as the interest that accrues when earnings for each specified period of time added to the principal thus increasing the principal base on which subsequent interest is compound.

Formula -
A = p (1 + i)^n
where,
i = Annual rate of interest
n = Number of conversion period per year
INTEREST = An - P
or
= P ( 1 + i)^n - P

Let, move to ur Question -----

ɢɪᴠᴇɴ ----
ʀ =4%
ᴛ = 2
ꜱɪ = 80
ᴩ = ??
ᴄɪ = ??

ᴡᴇ ᴋɴᴏᴡ ᴛʜᴀᴛ

ꜱɪ = ᴩʀᴛ /100
80 = ᴩ × 4 × 2/100
80 × 100 /4 × 2= ᴩ
ᴩ = 1000

ᴄɪ = ᴩ(1+ʀ)^n- ᴩ
CI = 1000 ( 1+0.4)^2 -1000
= 1000(1.0816) -1000
= 1081.6 -1000
= ₹ 81 .6

so the CI = ₹81.6

☺☺ʜᴏᴩᴇ ɪᴛ ʜᴇʟᴩꜱ ᴜ ☺☺
♥♥ꜰᴇᴇʟ ꜰʀᴇᴇ ᴛᴏ ᴀꜱᴋ ᴀɴy qᴜᴇʀy♥♥