Question

The simple interest on a certain sum of money for 2 years at 10% per annum is ₹1600. Find the amount due and the compound interest on this sum of money at the same rate after 3 years, interest being reckoned annually.

Answer 1

Simple interest = PNR/100 where P = Principal N = no of years and R= Rate of interest

1600 = P(2)(10)/100

Or P = 8000 rupees.

If compound interest then

Interest accrued for 3 years = $8000(1.1)^3-8000</p><p>=2648$