Question

Calculate simple interest and compound interest on Rs100000 at 10% per annum for 5 consecutive years .

Answer 1

Dear Student,

Simple Interest=$\frac{P\times R\times T}{100}$
$$\begin{gathered} \frac{100000\times 10\times 5}{100} \\ =10000\times 5 \\ SI=50000 \end{gathered}$$

Compound interest formula
$$\begin{gathered} A=P\times {\left(1+\frac{r}{100}\right)}^T \\ CI=P\times {\left(1+\frac{r}{100}\right)}^T-P \\ =100000\times {\left(1+\frac{10}{100}\right)}^5-100000 \\ ={11}^5-{10}^5 \\ =161051-100000 \\ =61051 \end{gathered}$$

Regards,