Question

The simple interest at 10% for a certain amount after 2 years is 2000 rupees. If the interest is compounded annually, what would be the interest for same amount at the same rate after 2 years?​

Answer 1

Answer:

Compound interest 2 years =Rs. 315

Let principal=Rs. P

Amount =Principal+Interest

=Rs. P+315

A=P(1+R/100)

n

P+315=P(1+10/100)

2

=P(11/100)

2

P+315=121P/100

100P+31500=121P

21P=31500

P=1500

Principal is Rs. 1500

Simple interest=P×R×T/100

S.I=1500×10×2/100

S.I=30000/100

S.I=300Rs.

Simple interest for 2 years at 10% on Rs. 1500 is Rs. 300.