Question

the simple interest on a sum of rs 4800 for 2 years is rs 769.what will be the compound interest on the same sum at the same rate and for the same period​

Answer 1

Answer:

The compound interest is Rs. 5598.72.

Step-by-step explanation:

The formula to compute the simple interest is:

$SI=\frac{Prt}{100}$

Given:

P = Rs. 4800

SI = Rs. 769

t = 2 years

Compute the value of r as follows:

$SI=\frac{Prt}{100}\\769=\frac{4800\times r\times2}{100}\\ r=8.01042\\\approx8\%$

The interest rate is 8%.

Compute the compound interest on the same amount, at the same rate and for the same period​ as follows:

$CI=P[1+\frac{r}{100}]^{t}\\=4800\times[1+\frac{8}{100}]^{2}\\=4800\times1.08^{2}\\=5598.72$

Thus, the compound interest is Rs. 5598.72.