Find the CI on Rs. 5000 for 2 years at 5% per annum compounded annuall

1.	Find the CI on Rs. 5000 for 2 years at 5% per annum compounded annually. Also find the SI for Rs. 5000 for 2 years at 5% per annum. Find the difference between both interests.
Answer» ONG>Answer: 1 st year Principal, P=RS.5000 Time, T=1 year Rate of interest ,R=6% ∴simple Interest, SI= 100 PTR = 100 5000×10×6 =Rs.300 ∴Amount=P+SI=Rs.5300 2nd year Principal = Amount of 1st year=Rs.5300 Rate of interest =8% Time =1 year ∴ Interest = 100 5300×1×8 =Rs.424 ∴ Amount =Rs.(5300+424)=Rs.5724 The interest of 2nd year is the required compound interest. So, C.I=rs.424 and the required amount is Rs.5724

Find the CI on Rs. 5000 for 2 years at 5% per annum compounded annually. Also find the SI for Rs. 5000 for 2 years at 5% per annum. Find the difference between both interests.

Answer» ONG>Answer:

year

Principal, P=RS.5000

Time, T=1 year

Rate of interest ,R=6%

∴simple Interest, SI=

100

PTR

100

5000×10×6

=Rs.300

∴Amount=P+SI=Rs.5300

2nd year

Principal = Amount of 1st year=Rs.5300

Rate of interest =8%

Time =1 year

∴ Interest =

100

5300×1×8

=Rs.424

∴ Amount =Rs.(5300+424)=Rs.5724

The interest of 2nd year is the required compound interest. So, C.I=rs.424 and the required amount is Rs.5724