Question

Simple interest on a sum at 12.5% p.a. for 2 years is Rs. 256. The compound interest on the same sum at the same rate and for same period is?​

Answer 1

Step-by-step explanation:

SI = PRN/100

Si = 256, R = 12.5%, N = 2 Years

Thus

256 = P 25/100

P = 256*4

Thus P = 1024

Now For CI

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

= 1024 ( 1.125)^2

A = 1296

Now CI = A - P = 1296 - 1024 = 272

Thus CI = 272