The simple interest on a sum of money for 2 years at 12% per annum is rupees 1380
1 answer:
Answer:
5750
710.7
Step-by-step explanation:
Simple interest = principal. * rate * time
Principal (p) = sum of money
1380 = p * 0.12 * 2
1380 = 0.24p
p = 1380 / 0.24
p = 5750 rupees.
The compound interest :
A = P(1 + r/n)^nt
A = final amount
n = number of compounding times per period
t = period
A = 5750(1 + 0.12/2)^2*1
A = 5750(1 + 0.06)^2
A = 5750(1.06)^2
A = 5750 * 1.1236
A = 6460.7
Hence, compound interest is :
Final amount - principal
6460.7 - 5750
= 710.7 rupees
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