Question

The simple interest on a certain sum of money for 2 year at 6% is rs. 1200. find the compound interest at the same rate and for the same time

Answer 1

S.I=PRT/100
1200=P*6*2/100
1200*100/12=P
10000=P
COMPOUND INTEREST FOR 1ST YEAR
INTEREST 1=10000*6*1/100
=Rs600
AMOUNT=600+10000
                = 10600
COMPOUND INTEREST FOR 2ND YEAR
IINTERST 2=10600*6*1/100
=Rs636
COMPOUND INTEREST=INTEREST 1+ INTEREST 2
                                        =600+636
                                        =Rs1236