Question 44

The Compound Interest on a certain sum for 2 years at 10% is Rs.2100. What will be the Simple Interest for the same period, on the same sum and at the same rate?

Solution

amount= principle+interest

compound interest,

$$ amt = p \times (1+ \frac{r}{100})^n $$

amt=p+interest

interest=2100

r=10%

n=2

$$ p+2100 = p \times (1+ \frac{10}{100})^2$$

solving we get p=10000

simple interest

$$ si= \frac{p \times n \times r}{100} $$

p=10000

n=2

r=10%

substituting

$$ si= \frac{10000 \times 10 \times 2}{100} $$

=2000

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