The simple interest on certain sum of money at 6% per annum for 3 years is ₹432. What is the compound interest on the same sum for 2 years at 5% per annum, compounded annually
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Answer:
246
Step-by-step explanation:
SI = 432, Time = 3 years, R = 6%,
Let Principal = x.
SI = PTR/100
=> 432 = x * 3 * 6/100
=> 43200 = 18x
=> x = 2400.
Then,
A = P(1 + r/100)^n
= 2400(1 + 5/100)^2
= 2400(1 + 1/20)^2
= 2400(21/20)^2
= 2646
CI = A - P
= 2646 - 2400
= 246
Therefore, Compound Interest = 246
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