Simple interest on a sum of money for 2 years at 6 % per annum is Rs. 5200. What will be the compound interest on the sum at the same rate for the same period.

Question

Philoid · Accepted Answer

S.I = Rs.5200

Rate of simple interest =

time = 2 years

Let principal = Rs. P

so, by formula

=

Hence,

Principal = Rs. 40000

now,

Rate of compound interest =

Time = 2 years

so,

compound interest =

compound interest

compound interest = 45369 – 40000 = Rs.5369

Simple interest on a sum of money for 2 years at 6% per annum is Rs. 5200. What will be the compound interest on the sum at the same rate for the same period.