Question

The simple interest on a certain sum of money at 10% per annum is Rs. 6,000 in 2 years.
Find :

(i) the sum.

(ii) the amount due at the end of 3 years and at the same rate of interest compounded annually.

(iii) the compound interest earned in 3 years.

Answer 1

$SI=6,000S.I=\frac{P\times r\times t}{100}\frac{P\times 10\times 2}{100}=6,000P=6,000\times 5P=30,000\left(i\right)thesum=30,000A=P(1+\frac{r}{100}{)}^{n}A=P[1+\frac{10}{100}{]}^{3}A=30,000\left[\frac{1331}{1000}\right]A=36,630\text{(ii)the amount due at the end of 3 years}=36,630\text{(iii) the compound interest earned in 3 years},CI=A-PCI=36,630-30,000CI=6,630$