Question

what sum of money will produce the same compound intrest in 2 years at 5%per annum as rupee943 produces in 10 years at 5%rate of simple interest

Answer 1

Acc to the question,

Principle = Rs x.

Time = 2 yrs.

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 compound intrest in 2 years at 5%per annum as Rs 943 produces in 10 years at 5%rate of simple interest.