Question

Simple interest of 10% given for a certain amount after 2 years is 2000 rupees. If the interest is compounded annually, what would be the interest for the same amount at the same rate after 2 years?​

Answer 1

Answer

step by step solutions

Compound interest 2years =Rs. 315

Let principal=Rs .p

Amount=principal+interest

Rs = p+315

A =p(1+R/100)

n

P+315=p(1+10/100)

=2

P(11/100)

2

P+315=121p/100

100p+31500=121p

21p=31500

p=1500

principal is Rs1500

simple interest=p*r*t/100

SI=1500*10*2/100

SI =30000/100

SI=300Rs

SI for 2years at 10%on Rs 1500is Rs 300