Question

if the simple interest on a sum of money for 2 years at 5% per annum is rupees 50 what is the compound interest compounded annually on the same sum at the same rate for the same period of time​

Answer 1

Step-by-step explanation:

si=(p*r*t)/100

r=5%

p=?

t=2 yrs

50=(p*2*5)/100

50=p*10/100

50=p/10

p=500/-

ci=a-p

a=p*(1+(r)/100)^t

=500*(1+(2)/100)^2

=500*(102/100)^2

=520.2

a=520.2

c=a-p

=520.2-500

=20.2

hence the compound intrest =20.2