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If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same sum at the same rate and for the same time?1). Rs. 51.252). Rs. 52.453). Rs. 54.254). Rs. 60.25 |
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Answer» For CALCULATING simple interest, Time PERIOD = 2 years, Rate = 5%, simple interest = Rs. 50 Let Principal = P We know, Simple interest = (P × R × T)/100 50 = (P × 5 × 2)/100 P = Rs. 500 Now, for calculating compound interest, Time period = 2 years, Let the rate = 5%, Principal = Rs. 500 We know, Amount = Principal (1 + Rate/100)n And compound interest = Amount - Principal = 500 (1 + 5/100)2 - 500 = Rs. 51.25 ∴ Compound interest on the same at the same rate and for the same time is Rs. 51.25 |
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