Question

The formula for amount to be paid after 'n' years for simple interst and compound interest is ______ and _______respectively .

• A. $A=P\times (1+\frac{RT}{100})$, $A=P\times {(1+\frac{R}{100})}^n$
• B. $A=P\times (1+\frac{Rn}{100})$, $A=P\times {(1+\frac{R}{100})}^n$
• C. $A=P\times (1+\frac{RT}{100})$, $A=P\times {(1+\frac{R}{100})}^3$
• D. $A=P\times (1+\frac{RT}{100})$, $A=P\times {(1+\frac{RT}{100})}^n$

Answer 1

The correct option is B $A=P\times (1+\frac{Rn}{100})$, $A=P\times {(1+\frac{R}{100})}^n$

For simple interest,
$A=P\times (1+\frac{RT}{100})$
where,

A = Amount to be paid after n years
P = Principal
R = Rate of interest(percentage)
T = time period = n

$\Rightarrow A=P\times (1+\frac{Rn}{100})$

For compound interest,

$A=P\times {(1+\frac{R}{100})}^n$

where,

A = Amount to be paid after n years
R = Rate of interest
P = Principal
n = Number of terms