Question

Find the simple interest on $Rs2000$ at $5$ per annum for $2$ years.

Answer 1

Compound interest:

$A=P(1+\frac{r}{100})t$

Given:Principal$=$Rs$2000$

$r=5$

$t=2$

$A=2000(1+\frac{5}{100})\times 2$

$A=2000\times \frac{105}{100}\times 2$

$A=$Rs.$4,200‬$