Question

Simple interest on certain sum of money for 3 year at 5% is 540. If sum earns compound interest for the same time and rate find the total sum received at the end of the period.

Answer 1

rate 5/100=1/20
8000
400 400 400
20 20
20
1
1200=540
1=.45
1261*.45=567.45

Answer 2

The total sum received at the end of the period is 4167.45.

Step-by-step explanation:

It is given that simple interest on certain sum of money for 3 year at 5% is 540.

I=540, r=5%=0.05, t=3.

Formula for simple interest

$I=P\times r\times t$

where, P is principal, r is rate of interest, t is time in years.

Substitute I=540, r=0.05 and t=3 in the above formula.

$540=P\times 0.05\times 3$

$540=0.15P$

Divide both sides by 0.15.

$\frac{540}{0.15}=P$

$3600=P$

The principal amount is 3600.

Formula for amount after compound interest is

$A=P(1+\frac{r}{n})^{nt}$

where, P is Principal , r is rate of interest, t is time in year and n is number of times interest compounded per year.

Substitute P=3600, r=0.05, n=1, t=3 in the above formula.

$A=3600(1+\frac{0.05}{1})^{1(3)}$

$A=3600(1.05)^{3}$

$A=4167.45$

Therefore, the total sum received at the end of the period is 4167.45.

#Learn more:

Sam invested ₹15000 at the rate of 10% per annum for 1 year.If the interest is compounded half-yearly ,then the amount received by Sam at the end of the year will be _______?

https://brainly.in/question/1568636

Find the amount and compound interest on 10,000 at 7% compound interest p.a. after 5 years.

brainly.in/question/13032850