Question

p = Rs 1,200 ; 4% p.a ; n= 2 years

Answer 1

PtR/100 is the simple interest formula


by using it = 1200x4x2/100
= 12x4x2
= 48x2
=+96 rs
so the total amount at end of 2years for S.I is 1296 rs

Answer 2

Solutions :-


Given :

Principle (p) = Rs 1,200
Rate (r) = 4% p.a.
Time (t) = 2 years


Find the Amount by using simple Interest (S.I) method :-

S.I = (p × r × t)/100
= (1200 × 4 × 2)/100
= 9600/100
= 96

Amount = S.I + p
= Rs (96 + 1200)
= Rs 1296


Now,
Find the Amount by using compound Interest method :-

A = p(1 + r)^t
= Rs 1200 ( 1 + 4%)²
= Rs 1200 (1 + 0.04)²
= Rs 1200 (1.04)²
= Rs 1200 × 1.0816
= Rs 1297.92



Hence,
Amount by simple Interest = Rs 1296
Amount by compound interest = Rs 1297.92