Question

the simple interest on a sum for 2 years at 10 percent annum is rs 1000. the same amount is borrowed at 8 percent per annum and compounded annually. find the compound interest and the amount to be paid after 2 years​

Answer 1

Step-by-step explanation:

it is given that

period =2 years

Rate = 10% p.a.

we know that

Sum=(SI×100)/(r×n)

Substituting the value

=(1600×100)/(10×2)

=8000

Here

Amount after 3yearz=p(1+r/100)n

Substituting the value

=8000(1+10/100)³

By further calculations

=8000×11/10×11/10×11/10

=10645

so the compound interest =A-p

Substituting the value

=10648- 8000

=2648

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