Question

the compound interest for two years on a capital is rs two more than the simple interest for the same period. if the rate of interest is 5% per year find the capital​

Answer 1

Step-by-step explanation:

The ratio of the amount for two years under compound interest annually and for one year under simple interest is 6:5. When the rate of interest is same, then find the value of rate of interest?

Medium

Answer

Let the principle = P, Rate = x% per annume

⇒

P(1+

100

r×1

)

P(1+

100

r

)

2

=

5

6

(1+

100

r

)=

5

6

⇒

100

r

=

5

61

r=

5

100

=20

∴