Question

If the simple interest on a sum at 4percent p.a for 2 years is Rs .80 then the compound interst on the same for the same period is

Answer 1

compound interest on same period is 81.6

Answer 2

Simple interest = P× R×T/100
80rs= P×4×2/100
80rs=P/12.5
80rs×12.5=P
1000=P

Compound Interest = P(r + 1/100)raises to power n(time) - P
= 1000(4 + 1/100) raises to power 2 - 1000
= 1000 × 104/100×104/100 - 1000
= 1081.6 - 1000
= 81.6rs
I hope this may help you!