Question

The compound interest on a certain sum of money at 5% p.a for 2
years is Rs.820. Find the simple interest on the same sum for 5 years at 6% p.a.

Answer 1

Answer:

On interest being compounded for 2 years and R=5 %, Amount=P(1+

100

R

)

N

=P(1+

100

5

)

2

=P×(1.05

2

)=1.1025P

So, C.I.=A−P=1.1025P−P=0.1025P

Given, C.I.=Rs246

=>0.1025P=Rs246

=>P=Rs2,400

For

=>P=Rs2,400

N=3years

R=6 %

We have S.I.=

100

PNR

=

100

2,400×3×6

=Rs432