Question

salma borrowed from mahila samiti a sum of rs.1875 to purchase a sewing machine. if the rate of interest is 4% per annum, what is the compound interest that she has to pay after 2 years???​

Answer 1

Given :-

• Salma borrowed from mahila samiti a sum of rs.1875 to purchase a sewing machine. If the rate of interest is 4% per annum.

To find :-

• What is the compound interest that she has to play after 2 years ?

Solution :-

• Principal (P) = Rs.1875

• Rate of interest (R) = 4%

• Time (T) = 2 years

As we know that

→ A = P(1 + R/100)

Where " A " is amount, " P " is Principal, " R " is rate of interest and " n " is time.

• According to the question

→ A = 1875(1 + 4/100)²

→ A = 1875(1 + 1/25)²

→ A = 1875(25 + 1/25)²

→ A = 1875(26/25)²

→ A = 1875 × 26/25 × 26/25

→ A = 75 × 26 × 26/25

→ A = 3 × 26 × 26

→ A = Rs.2028

Now,

→ Compound Interest = Amount - Principal

→ C.l = A - P

→ C.l = 2028 - 1875

→ C.l = Rs.153

Hence,

• Compound interest is Rs.153

Answer 2

salma borrowed from mahila samiti a sum of rs.1875 to purchase a sewing machine. if the rate of interest is 4% per annum, what is the compound interest that she has to pay after 2 years???