Question

what is the component intrest on the sum for 2 years at 12.5 percentage per annum is rupees 510 the simple interest on the same sum at the same rate for the same period of time is

Answer 1

(P×12.5×2)/100= 510

P=51000/25

P= 2040


now

Compound interest of Rs. 2040

=2040{( 1+ 12.5/100)^2 -1}

=2040×(81/64 -1)

=2040× 17/64

=541.87