if the compound interest on a sum for 2 years at 12 1/2% per annum is rs 510 the simple interest on the same sum at the same rate for same period of time is

 

Asked by nimeetdhir149 | 8th Feb, 2019, 04:01: PM

Expert Answer:

Here, n = 2 years , r = 12begin mathsize 16px style 1 half end style% = 12. 5% and Compound Interest = Rs. 510
We know that, Compound Interest = A - P 
 begin mathsize 16px style 510 equals straight P open parentheses 1 plus space straight r over 100 close parentheses to the power of straight n space minus space straight P
space space space space space space space equals straight P open square brackets open parentheses 1 plus space straight r over 100 close parentheses to the power of straight n minus space 1 close square brackets
space space space space space space space equals straight P open square brackets open parentheses 1 plus space fraction numerator 12.5 over denominator 100 end fraction close parentheses squared minus space 1 close square brackets
space space space space space space space equals straight P open square brackets open parentheses fraction numerator 112.5 over denominator 100 end fraction close parentheses squared minus space 1 close square brackets
510 equals straight P cross times 0.265625
rightwards double arrow straight P space equals space fraction numerator 510 over denominator 0.265625 end fraction equals Rs. space 1920 end style
P = 1920 , n = 2 and r = 12. 5%
 
begin mathsize 16px style Simple space Interes space equals space fraction numerator straight P space cross times space straight r space cross times straight n over denominator 100 end fraction space equals space fraction numerator 1920 space cross times 12.5 space cross times 2 over denominator 100 end fraction equals space Rs. space 480 end style

Answered by Yasmeen Khan | 8th Feb, 2019, 05:08: PM

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