Question

Salma borrowed from Mahila Samiti a sum of Rs1875 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

Answer:

P = ₹1875

R = 4% p.a.

T = 2 years

A = P(1 + R/100)^T

= 1875 × (1 + 4/100)^2

= 1875 × (1 + 1/25) × (1 + 1/25)

= 1875 × 26/25 × 26/25

= 75 × 26/25 × 26

= 3 × 26 × 26

= 2028

Therefore, the sun of 1875 will amount to 2028 in 2 years at 4% p.a.

The compound interest will be A - P

= 2028 - 1875

= ₹153

Answer 2

A R E Y O U I N S N A P C H A T

I AM FINE