Question

the simple interest on certain sum of money for two years at 11/2% is Rs.6600.what will the compund interest on that sum at the same rate for the same time period

Answer 1

Answer:

Step-by-step explanation:

Simple Interest (SI) is given by SI= PRT/100

where P is principle, R is rate of interest, T is time

Compound Interest (CI) is given by  P (1 + r/100)^n

where P is principle, R/r is rate of interest, n is time

The simple interest on certain sum of money for two years at 11/2% is Rs.6600.what will the compound interest on that sum at the same rate for the same time period

So find SI and CI and equate

As Principle is not given let's assume it to be Rs. a

SI=(a x 11/2 x 2)/100,

6600=11a/100

a=6600 x 100/11=60000 Rs

Put this value in CI

P=60000 Rs, R=11/2 %, n=2 years

We can easily find CI