Question

the simple interest on a certain sum of money for 2 years is rupees 160 at 4% per annum find the amount interest on the same sum of money at 5 per annum for 2 years when the interest is compounded annually
in detail please

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Answer 1

Answer:

Given:-

Simple interest = 160 rupees

Rate of interest = 4%/annum

Time period = 2 years

Now they have said that find amount on the same interest but rate of interest and time period has changed. They are:-

Rate of interest = 5%/annum

Time period = 2 years

To find the amount, we have to find the principal first.

Interest = Principal × Rate interest × Time/100

160 = ? × 5 × 2/100

? = 160 × 100/5×2

? = 16000/10

? = 1600

Principal = 1600

Amount = Principal + Interest

Amount = 1600 + 160

Amount = 1760

Amount is 1760 rupees.