Question

Simple interest on a certain some of money at 10% for 3 years is Rs. 4200. If the same money were invested at 5% compound interest for the same time, what compound interest would it be?

Answer 1

Answer:

We know A= P(1+x)ⁿ

here A-P= Rs 4200

rate of interest x= 10% = 0.1

n= Number of years= 2

So A= P(1.10)² = 1.21 x P

So A= 1.21P

So Interest = A-P

= (1.21–1.00)P

= 0.21P=Rs 4200

So P= 4200/0.21= Rs 20,000

Therefore Simple Interest for Rs 20,000 at 10% for 2- years = 20,000 x 2 x 0.1

S.I for 2- years = Rs 4,000/=

Answer 2

Answer:

CI = 1404.9

Step-by-step explanation:

p = 4200

t = 3 years

rate = 10%

A = p[1+r/100] ^n

a = 4200[1+ 10/100]^3

a = 4200[11/10]^3

a = 4200 * 11/10 *11/10 * 11/10

a = 4200 * 1331/1000

a = 42 * 1331/10

a = 21 * 1331/10

a = 27951/10

a = 2795.1

CI = a-p

    = 2795.1 - 4200

     = 1404.9

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