Question

the compound interest on a certain sum of money for 2 years at 10% per annum is rs.420. the simple interest on the same sum at the same rate and same time will be:

Answer 1

here is your answer

Answer 2

Dear Student,

◆ Answer -

SI = Rs. 400

● Explanation -

Compound interest is calculated by -

CI = P [(1+r)^t - 1]

420 = P [(1 + 10/100)^2 - 1]

Solving for P,

P = Rs. 2000

Simple interest on the same sum at the same rate is -

SI = P × t × r

SI = 2000 × 2 × 10

SI = Rs. 400

Hence, simple interest on the same sum at the same rate is Rs. 400.

Thanks dear. Hope this helps you...