Question 74

The simple interest on a certain sum for two years at the rate of 20% per annum is ₹250. What is the compound interest (compounded annually) on the same sum for the same period at the samerate of interest?

Solution

S.I= $$\frac{P \times R \times T}{100}$$

250 = $$\frac{P \times 20 \times 2}{100}$$

= 625

compound interest + P= $$P(1+\frac{R}{100})^2$$

=$$625(1+\frac{20}{100})^2$$

compound interest + P=Rs900

C I = Rs 275

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