simple interest on a sum of money for 2years at 8% per annum is rs 1920. what would be the compound interest on the same sum at the same rate of interest?

Asked by eabledutta309 | 24th Jul, 2019, 01:44: PM

Expert Answer:

begin mathsize 16px style
Simple space Interest space equals space fraction numerator straight P space cross times space straight R space cross times straight N over denominator 100 end fraction
rightwards double arrow 1920 equals fraction numerator straight P space cross times space 8 space cross times 2 over denominator 100 end fraction
rightwards double arrow straight P space equals space fraction numerator 1920 space cross times space 100 over denominator 8 space cross times 2 end fraction equals space 192000 over 16 space equals space 12000
Compound space Interest space equals space straight P open square brackets open parentheses 1 space 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 space space space space space space space space space space space space space space space space space space space space space equals space 12000 space open square brackets open parentheses 1 space plus space 8 over 100 close parentheses squared minus space 1 close square brackets space
space space space space space space space space space space space space space space space space space space space space space space space space space space space space equals space Rs. space 1996.80 end style

Answered by Yasmeen Khan | 24th Jul, 2019, 02:22: PM