Question

the simple interest on a certain sum of money for two years at 5percent per annum is 540 rupees what will be compound interest on that sum at the same rate for the same period

Answer 1

Sum = Si*100/R*T=Rs5400
Principal for 1st year = Rs 5400
Si for 1st year =5400*5*1/100=Rs270
Amount for 1st year =5400+270= Rs 5670
Principal for 2nd year = 5670*5*1/100=Rs 283.5
Amount for 2nd year = 5670+383.5= Rs5953.5
Ci= Amount - Principal
= Rs 5953.5-5400= Rs 553.5
HOPE IT HELPS U.

Answer 2

simple interest is always equal for every year so
simple interest for 2 yrs = 540 rs, then simple interest for one yr= 540/2 =270.

as we know simple interest and compound interest is equal for first yr then, compound interest for first yr =270rs
and now C.I. for 2nd yr= 270 + 5% of 270=283.5
now total C.I. = c.i. of 1st yr + c.i. of 2nd yr= 270 + 283.5 = 553.5 rs