Q:
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 at the same rate and for the same time?
Answer & Explanation
Answer: A) Rs.51.25
Explanation:
Sum =Rs.(50 x 100/2x5)
= Rs. 500.
Amount
=[Rs.500x(1+5/100)²]
=Rs(500x21/20x21/20).
=Rs. 551.25
C.I
= Rs. (551.25 - 500)
= Rs. 51.25
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