Question

If the simple interest on a sum of money for 3 years at 4% per annum is 1200.
What is the compound interest on the same sum at the same rate and for 2
years?
Answer RS 816​

Answer 1

Compound Interest = Rs 816

Step-by-step explanation:

Given:

• Rate is 4 % per annum.
• Time is 3 years.
• Simple interest is Rs 1200.

To Find:

• What will the compound interest on same rate for 2 years ?

Solution: Let the principal be Rs p. As we know that

Simple Interest = (P × R × T/100)

A/q

• S.I is Rs 1200.

➟ 1200 = P × 4 × 3/100

➟ 1200 × 100 = 12P

➟ 120000/12 = P

➟ 10000 = P

So the principal is Rs 10000.

Now for compound interest we are given with

• P = Rs 10000
• R = 4 % per annum.
• T = 2 years

First of all lets find out total amount by using formula

Amount = Principal × ( 1 + Rate/100 )ⁿ

$\implies{\rm }$ A = 10000( 1 + 4/100)²

$\implies{\rm }$ A = 10000( 104/100 )²

$\implies{\rm }$ A = 10000 × 10816/10000

$\implies{\rm }$ A = 10816

Amount = Principal + C.I

10816 = 10000 + C.I

10816 – 10000 = C.I

816 = C.I

Hence, the compound interest after 2 years will be Rs 816.

Answer 2

Answer:

✡ Question ✡

➡ If the simple interest on a sum of money for 3 years at 4% per annum is 1200. What is the compound interest on the same sum at the same rate and for 2 years?

Given ✡

⚫Rate is 4 % per annum.

⚫Time is 3 years.

⚫Simple interest is Rs 1200.

✡ To Find ✡

⚫What will the compound interest on same rate for 2 years ?

✡ Solution ✡

➡ Let the principal be Rs p.

As we know that,

⭐Simple Interest = (P × R × T/100)⭐

According to the question ,

➡S.I is Rs 1200.

=> 1200 = P × 4 × 3/100

=> 1200 × 100 = 12P

=> 120000/12 = P

=> 10000 = P

▶So the principal is Rs 10000.

➡Now for compound interest we are given with

⚫P = Rs 10000

⚫R = 4 % per annum.

⚫T = 2 years

➡ First of all we have to find out total amount by using formula ,

Amount = Principal × ( 1 + Rate/100 )ⁿ

=> A = 10000( 1 + 4/100)²

=> A = 10000( 104/100 )²

=> A = 10000 × 10816/10000

=> A = 10816

➡We have to find the amount we know the formula that is,

⭐Amount = Principal + C.I ⭐

=>10816 = 10000 + C.I

=> C.I = 10816 – 10000

=> C.I = $\bold{\</em><em>l</em><em>a</em><em>r</em><em>g</em><em>e</em><em>{\fbox{\color{blue} {</em><em>8</em><em>1</em><em>6</em><em>}}}}$

☞ Hence, the compound interest after 2 years will be Rs 816.

__________________

➡ Additional Information ✡

⚫ Principal is the amount which is lended or deposited.

⚫ Interest is the excess money over the principal.

⚫ Interest is calculated for year. Rate of Interest is the interest of Rs100 for 1 year.

⚫ Amount = Interest + Principal

⚫ If principal= Rs = P, Rate of Interest = r% , time= t year, and total interest = I then

➡ I = PRT/100