Question

The simple interest is...........compound interest on a certain sum for the first year.
(a) less than
(b) greater than
C) equal to
(d) none of these
hey I am help me in this question
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Answer 1

Answer:

(C)equal to

is correct ans

Answer 2

The simple interest is equal to the compound interest on a certain sum for the first year (option c).

This can be better understood by the following example:

Let's take the principal amount (P) = Rs. 500

Rate (R) = 3% per annum

Time (T) = 1 year

So, the simple interest will be found using the following formula:

SI = Principal×Rate×Time/100

SI = 500×3×1/100

SI = Rs. 15

Now, we will find the amount after the compound interest using the following formula.

Amount = P(1 +R/100)ⁿ where n is the time in years

A = 500(1 + 3/100)¹

A = 500(103/100)

A = 5×103

A = Rs. 515

Now, the compound interest can be found by subtracting the principal amount from the amount found after the compound interest.

CI = Rs. (515-500)

CI = Rs. 15

Hence, the simple interest is equal to the compound interest on a certain sum for the first year.