Question

If the simple interest on the sum of money for 3 years and 8% per annum is a re 7500 find the compound interest on the same sum for the same period at the same rate

Answer 1

Answer:

Step-by-step explanation:

Simple Interest I = Prt

Thus principle P = I/ (rt)

$P =\dfrac{7500}{(0.08 *3)} = 31250$

The compound interest is

$A = P \left(1 + \dfrac{r}{t} \right)^{rt}$

$A = 31250 \left(1 + \dfrac{0.08}{3}\right)^{(0.08* 3)}$

$A = 39336$

Thus Interest = A - P = 39336 - 31250 = 8116

Answer 2

Answer:

Step-by-step explanation:

Simple Interest I = Prt

Thus principle P = I/ (rt)

P =\dfrac{7500}{(0.08 *3)} = 31250P=

(0.08∗3)

7500

=31250

The compound interest is

A = P \left(1 + \dfrac{r}{t} \right)^{rt}A=P(1+

t

r

)

rt

A = 31250 \left(1 + \dfrac{0.08}{3}\right)^{(0.08* 3)}A=31250(1+

3

0.08

)

(0.08∗3)

A = 39336A=39336

Thus Interest = A - P = 39336 - 31250 = 8116