Question

The simple interest on a certain sum of money at $10\%$ per annum is Rs.$6000$ in $2$ years. Then find :
(i) The sum.
(ii) The amount due at the end of $3$ years and at the same rate of interest compounded annually.

Answer 1

We have,

$SI=Rs.6000,P=?,T=2years,R=10\%$

Part $\left(i\right)$:

We know that:

$SI=\frac{P\times R\times T}{100}$

$6000=\frac{P\times 10\times 2}{100}$

$6000=\frac{P}{5}$

$P=Rs.30,000$

Part $\left(ii\right)$:

The amount at the end of the $3rd$ year at the same rate of interest compounded annually.

or, $A=P{(1+\frac{R}{100})}^T$

or, $A=30000{(1+\frac{10}{100})}^3$

or, $A=30000{(1+\frac{1}{10})}^3$

or, $A=30000{\left(\frac{11}{10}\right)}^3$

or, $A=Rs.39,930$