Question

the sum of money for which the coumpound interest is 2 years will be the same as simple interest on rupees 943 for 10 years, the rate of interest being 5% compounded annualy is

Answer 1

Answer:

according to question

principal =Rs x

Time = 2 years

rate = 5%

SI = 943 * 5 * 10 * 0.01 = Rs 471.5

therefore ,471.5 = x {1+0.01*5)^2-1}

or 471.5 = x*0.1025

or x=Rs 4600

therefore Rs 4600 will produce the same interest in 2 years at 5%per annum as Rs 943 produce in 10 years in 5% rate of simple interest