Question

the simple interest on a certain sum of money for 2 years at 6.5 % per annum is 5200 find the compound interest on the same sum at the same rate and for the same time period the interest being compounded annually

Answer 1

si=ptr/100=5200 ( given). p means Principal amount

=p*2*6.5/100=5200
p=5200*100/5=40000


CI=p[(1+r)^n -1]
=40000[(1+6.5)^2-2]
=5369