Question

The difference between compound interest and simple interest on a ceetain sum of money at 10% per annum for 2 years is rs. 750. Find the the sum if interest is compounded annually.

Answer 1

c.i = p ( 1 + r /100)^n
= 750 ( 1 + 10 /100)^ 2
=750 (110/100 )^2
= 750( 11/10)^2
=750(11/10)(11/10)
=7.5
s.i = prt/100
=750×10×2/100
=150
c.i -s.i
= 7.5-150
=142.5