Question

Simple interest on a sum of money for 2 years at 2% per annum is Rs. 60. What will be the Compound interest on that sum at the same rate for the same time period​

Answer 1

Answer:

Correct option is A)

Let the sum=P Rs.

S.I=50 Rs.

Rate of interest=5 %

Time =2 years.

S.I=

100

P×R×T

50=

100

P×5×5

P=

5×2

50×100

=500Rs.

C.I. of 500 Rs

Amount=500(1+

100

5

)

2

⇒500×

100

105

×

100

105

⇒500×

20

21

×

20

21

⇒551.25

C.I=551−500−51.25Rs.

Answer 2

Given:

Simple interest on a sum of money for 2 years at 2% per annum is Rs60.

To Find:

What will be the Compound interest on that sum at the same rate for the same time period​?

Solution:

It is given that Simple interest on a sum of money for 2 years at 2% per annum is Rs60 and we need to find the compound interest for the same situation, let the principal amount be P,

$60=\frac{P*2*2}{100}\\P=1500$

So we have the principal amount as Rs1500, now using the formula for compound interest to first the value of the amount after 2 years, we have

$A=1500(1+0.02)^2\\=1500*1.0404\\=1560.6$

So the interest for compound will be

$CI=A-P\\=1560.6-1500\\=60.6$

Hence, the Compound interest on that sum at the same rate for the same time period​ is Rs60.6.