Question

the compound interest on a sum of money for 2 years at the rate of 5% per annum is rupees 820. find the sum. find the rate of interest which will fetch the same interest in 2 years time if the sum of money is given on simple interest​

Answer 1

Answer:

Let the sum=P Rs.

S.I=50 Rs.

Rate of interest=5 %

Time =2 years.

S.I=

100

P×R×T

50=

100

P×5×5

P=

5×2

50×100

=500Rs.

C.I. of 500 Rs

Amount=500(1+

100

5

)

2

⇒500×

100

105

×

100

105

⇒500×

20

21

×

20

21

⇒551.25

C.I=551−500−51.25Rs.