Question

What is the interest on Rs.5500 at 10 p.c.p.a for 1 year?

Answer 1

$\huge{\mathfrak{\underline{\underline{\pink{Solution}}}}}$

Finding both Simple Interest and Compound Interest

$\bold{\underline{\fbox{Given}}}$

• Principal (P) = ₹5500
• Rate (r) = 10% p.a.
• Time (n) = 1 year

$\bold{\underline{\fbox{Formula \: used}}}$

$\sf{Simple \: Interest = {\frac{P × R × T}{100}}}$

$\sf{Compound \: Interest =}$ $\sf{P(1 + \frac{r}{100})^{n} - P}$

$\bold{\underline{\fbox{Simple \: Interest}}}$

⟹ Simple Interest = $\bold {\frac{5500 × 10 × 1}{100}}$

∴ The simple interest is ₹550

$\bold{\underline{\fbox{Compound \: Interest}}}$

⟹ $\bold{5500(1 + \frac{10}{100})^{1} - 5500}$

⟹ $\bold{6050 - 5500}$

∴ The compound interest is also ₹550.

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Hope it helps uh<3