Question

the simple interest accrued on sum of certain principal is rs 2000 in five years at rate of 4% per annum what would be the compound interest accrued on same principle at same principle at same rate in two years

Answer 1

I = P x N x R upon 100
2000 = P x 5 x 4 upon 100
2000 x 100 upon 20 = P
P=10000 rs.

Amount = P (1 + N/100)^R
= 10000 (1+ 2/100)^4
= 10000 (103/100)4
= 10000 (1.03)^4
= 10000 x 1.12550881
=11255.0881

C.I = Amount - Principal
= 11255.0881 - 10000
= 1255.0881