Question

The compound interest on a certain sum for 2 years at 8% per annum is 1040. The s i on it at the same ratio for 2 years

Answer 1

Answer:

Simple interest = Rs. 1000

Step-by-step explanation:

Formula used:

$Compound\:interest=P(1+\frac{r}{100})^n-P$

$Simple\:interest=\frac{P\:n\:r}{100}$

Given:

r = 8 % and n = 2 years

Compound interest = Rs. 1040

$P(1+\frac{r}{100})^n-P=1040$

$P[(1+\frac{r}{100})^n-1]=1040$

$P[(1+\frac{8}{100})^2-1]=1040$

$P[(1+\frac{2}{25})^2-1]=1040$

$P[(\frac{25+2}{25})^2-1]=1040$

$P[(\frac{27}{25})^2-1]=1040$

$P[\frac{729}{625}-1]=1040$

$P[\frac{729-625}{625}]=1040$

$P[\frac{104}{625}]=1040$

$P[\frac{1}{625}]=10$

$P=Rs. 6250$

Simple interest on the same sum for 2 years

$=\frac{P\:n\:r}{100}$

$=\frac{6250*2*8}{100}$

$=\frac{125*2*8}{2}$

$=\frac{125*2*4}{1}$

$=Rs.1000$