Question

If the simple interest on sum for 2 years at 10 %per annum is 1000 and the same amount is borrowed for 2 years at 8 %per annum and compounded annually then find the compound interest and the amount to be paid after 2 years.​

Answer 1

 

Simple Interest for one year.

Let the principal for the first year be P1. Here, P1 = Rs 20,000

 SI1 = SI at 8% p.a. for 1st year

 

Then find the amount which will be paid or received. This becomes principal for the next year.

Amount at the end of 1st year = P1 + SI1 = Rs 20000 + Rs 1600

 = Rs 21600 = P2 (Principal for 2nd year)

 

Again find the interest on this sum for another year.

 SI2 = SI at 8% p.a.for 2nd year = Rs 

 =  Rs 1728

 

Find the amount which has to be paid or received at the end of second year.

 Amount at the end of 2nd year = P2 + SI2

 = Rs 21600 + Rs 1728

 = Rs 23328

Answer 2

Answer:

The answer to the given question is the amount to be paid at the end of the second year is Rs.23328

Explanation:

Given :

The principal for one year is 20,000.

The rate of interest is given as 8%.

Several years are 2.

To find :

the compound interest and the amount to be paid after 2 years.

Solution :

The principal for the first year is given as P1=20,000rs.

The simple interest for the first year is SI1= SI at 8% per annum for the first year.

$20000 \times \frac{8}{100} = 1600$

The value of SI 1 is 1600.

Then we have to find the amount that should be paid or received. This becomes the principal for the next year.

The amount at the end of the first year is

$20000 + 1600 = 21600$

Which is P2.

we have to find the interest for another year.

SI2= SI at 8% per annum for the second year.

$21600 \times \frac{8}{100} =1728$

The amount to be paid or received at the end of the second year will be

P2+SI2.

$21600 + 1728 = 23328$

The amount to be paid at the end of the second year is 23328 Rs.

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