Question

The difference between the Compound interest and the simple interest on Rs 28000 for 2 years is Rs 70 at the same rate of interest.(i) What is the Rate of Interest? (ii) Calculate the Interest earned in the 2nd year under Compound Interest​

Answer 1

Answer:

i) 5%

ii) 1470

Step-by-step explanation:

Difference between SI and CI = PR²/(100)²

70 = 28000 * R²/10000

700000 = 28000 * R²

 R = 5%

Compound interest for the first year:-

 (28000 * 5)/100

 = 1400

Amount for the first year = 28000 + 1400 = 29400.

Compound Interest for the second year:

(29400 * 5 * 1)/100

= 1470

I HOPE THIS WILL HELP YOU OUT!