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Question
Simple interest on a sum of money for 2 years at 4% is Rs. 450. Find compound interest of the same sum and at the same rate for 2 years.
Sum
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Solution
SI = Rs. 450
R = 4%
T = 2 years
P = ?
P = `["SI" xx 100 ]/[ "R" xx "T" ] = [ 450 xx 100 ]/[ 4 xx 2 ] = Rs. 5625`
A = `5625[ 1 + 4/100 ]^2`
= `5625(26/25)^2`
= `[3802500]/625`
= Rs. 6084
CI = A - P = 6084 - 5625 = Rs. 459
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Concept of Compound Interest - Miscellaneous Problem
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