Question

The s.i of on a sum of money for 3 year at 8% per annum is 2500 what will be c.i on sum at the rate and the same period

Answer 1

SI=Rs. 2500

r=8%

T=3 yrs

P= SI/r*t

=2500/24

=Rs. 104.16

CI= 104(1+8/100)

=104*729/625

=Rs. 121.3056

Answer 2

We know that : Simple Interest is given by :

$\bold{\implies Simple\;Interest = \frac{Principal \times Rate\;of\;Interest \times Time\;period}{100}}$

Given : S.I = 2500 , Time period = 3 Years , Rate of Interest = 8%

$\bold{\implies 2500 = \frac{Principal \times (8) \times (3)}{100}}$

⇒ Principal = 10416.67

Now, Let us find the Compound Interest for this Principal

We know that , Amount in Compound Interest is given by :

$\bold{\implies Amount = P(1 + \frac{R}{100})^n}$

where :

✿ P is the Principal

✿ R is the Rate of Interest

✿ n is the Total Number of Conversion periods

Given : Rate of Interest(R) = 8% and n = 3, Because : we are compounding annually and find the amount after 3 years and we found Principal = 10416.67

$\implies Amount = 10416.67(1 + \frac{8}{100})^3\\ \\\implies Amount = 10416.67(1 + 0.08)^3\\\\\implies Amount = 10416.67(1.08)^3\\\\\implies Amount = 13122$

⇒ Compound Interest = Amount - Principal

⇒ Compound Interest = (13122 - 10416.67) = 2705.33