1.

For an amount, simple interest at the rate of interest of 12% per annum for 6 years is Rs. 25920. What will be the compound interest (in Rs) on same amount at the rate of interest of 8% per annum compounding annually for 2 years?1). 4326.32). 5563.43). 5888.64). 5990.4

Answer»

LET the AMOUNT be Rs. p

From the problem’s statement:

S.I = (p × r × t)/100

⇒ 25920 = (p × 12 × 6)/100

⇒ p = (25920 × 100)/(72)

⇒ p = 36000

Compound interest can be given as

⇒ CI = p((1 + 8/100)2 - 1)

⇒ CI = 36000 × (1.082 - 1)

⇒ CI = 5990.4

∴ The CI is Rs. 5990.4


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