The simple interest on a sum of money for 2 years at 8%per annum is $2400. what will be the compound interest on that sum at same rate and for the same period
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Step-by-step explanation:
first case
interest is 2400
rate is 8 percent
time is 2 years
principal to find
p=100*2400/8*2
principal is 15000
second case
to find compound interest
ci=2400*8*1(as In compound interest we take per year)/100
=192
2400+192
=2592 for first year
for second year
2592*8*1/100
=207.36
2592 +207.36
=2799.36
now to find compound interest we will subtract 2799.36(which is compound interest +principal) and 2400(which is principal)
2799.36-2400
=399.36 is compound interest
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