Question

simplify the compound interest

Answer 1

if we find out 4percent of 62500 then it is suppose to be 2500 that means the interest per annum i.e per year is 2500 rs as the validity is for two years.......the interest becomes 5000rs ...hope it helps...and u have to pay 67500 including interest when u repay it

Answer 2

A = P(1+R/100)^n
here‚
P = Rs.62500. R = 4. n =2. A =?
A = 62500(1+4/100)²
= 62500(1+1/25)²
= 62500(26/25)²
= 62500×26/25×26/25
= 67600
therefore the required amount is
Rs. 67600