Question

What will be the simple interest earned on rs.10000 in 2.5 years at the rate of 8%p.a

Answer 1

Step-by-step explanation:

Given principal=10000

time=2.5 years

rate=4%

Compound interest for 1st year=

100

10000×1×4

=Rs400

amount will be=10000+400=10400

Amount for 1st year is principal for second year

Compound interest for second year will be==

100

10400×1×4

=Rs416

Principal for next 6 months will be=10400+416=Rs10816

Compound interest for next six months will be=

100×2

10816×1×4

=Rs216.32

Total compound interest will be(400+416+216)=Rs1032