Question

which one of the following is larger.(1) compound interest on 2500 for 2 years at the rate of 10% p.a. (2) simple interest on 2000 for 3year at the rate of 25/2 p.a.​

Answer 1

Step-by-step explanation:

Simple Interest of first year =

2500×1×10

----------------------

100

= 250 = SI

= Amount of first year

= 2500+250

= 2750

◇ SI of second year =

2750×1×10

--------------------

100

= SI of second year = 275

= Total Amount = 2750+275

= 3025 ( Answer of phase 1 )

2. Simple interest of first year =

2000×1×25

----------------------

100×2

= SI = 250

= Amount of first year

= 2000+250

= 2250

◇ SI of second year =

2250×1×25

-------------------------

100×2

= SI = 1125/4

=281.25

= Amount of second year

= 2250+281.25

= 2331.25

◇ Simple Interest of third year =

233125×1×25

-----------------------

100×100×2

= SI = 9325/32

=291.41

= Total Amount of Third Year

= 2331.25+291.41

=2622.66 ( Answer of second phase)

Comparision =

2622.66 ( which one is larger) 3025

Therefore. Phase one is larger