Question

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 from at the same rate and for the same period

Answer 1

Hey there!!

Let us take the principle as = x

Term = 2 years

Rate = 8%

Simple interest = 2400 rupees

Formula for simple interest = ( principle × term × rate ) ÷ 100

= ( x × 2 × 8 ) ÷ 100

= ( 16 x ) ÷ 100

= ( 8 x ) ÷ 50

= ( 4 x ) ÷ 25

( 4 x ) ÷ 25 = 2400

( 4 x ) = 2400 × 25

x = ( 2400 × 25 ) ÷ 4

x = ( 600 × 25 )

x = rupees 15,000

Principle = rupees 15,000

Compound interest =

principle × ( 1 + ( r ÷ 100 ) ) ^ n

15,000 × ( 1 + ( 8 ÷ 100 ) ) ²

15,000 × ( 1 + ( 4 ÷ 50 ) ) ²

15,000 × ( 54 ÷ 50 ) ²

15,000 × ( 54 ÷ 50 ) × ( 54 ÷ 50 )

150 × ( 54 ÷ 5 ) × ( 54 ÷ 5 )

30 × ( 54 ) × ( 54 ÷ 5 )

( 6 ) × ( 54 ) × ( 54 )

= 17,496

17,496 is the amount

Amount = Principle + interest

17,496 = 15,000 + interest

2,496 = interest

Compound interest = 2,496

Hope my answer helps!

#BeBrainly

@sid071

Answer 2

Given,

For simple interest

Time (t)= 2 years

rate(r) = 8%

simple interest = Rs. 2400

We know that ,

$Simple\ Interest = \frac{ p*r*t}{100} \\ \\ 2400 = \frac{p*8*2}{100} \\ \\ p = \frac{240 *10^{3}}{16} \\ \\ p = 15*10^{3} \\ \\ p = Rs. 15000$

For compound interest

$Amount = p(1 + \frac{r}{100})^{n} \\ \\ = 15000(1 + \frac{8}{100})^{2} \\ \\ = 15000(1 + \frac{2}{25})^{2} \\ \\ = 15000(\frac{27}{25})^{2} \\ \\ = Rs. 17496$

Compound Interest = Amount - Principle

= 17496 - 15000

= Rs. 2,496