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

$\huge\red{ⓐⓝⓢⓦⓔⓡ}$

First, converting R percent to r a decimal

r = R/100 = 10%/100 = 0.1 per year,

then, solving our equation

I = 2000 × 0.1 × 2 = 400

I = 400.00

The simple interest accumulated

on a principal of 2,000.00

at a rate of 10% per year

for 2 years is 400.00.