Question
The simple interest on a sum of money at 4% per annum for 2 years is Rs 80. The compound interest on the same sum for the same period is = ?
Answer: Option D
$$\eqalign{
& {\text{Rate }}\% {\text{ = 4}}\% \cr
& {\text{Time (}}{{\text{t}}_1}) = 2\,{\text{years}} \cr
& {\text{SI for 2 years}} \cr
& {\text{ = 4}} \times {\text{2 = 8}}\% \cr
& {\text{CI for 2 years}} \cr
& {\text{ = 4 + 4 + }}\frac{{4 \times 4}}{{100}} \cr
& = 8.16\% \cr
& \operatorname{Required} \,CI \cr
& = \frac{{80}}{8} \times 8.16 \cr
& = Rs.\,81.60 \cr} $$
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$$\eqalign{
& {\text{Rate }}\% {\text{ = 4}}\% \cr
& {\text{Time (}}{{\text{t}}_1}) = 2\,{\text{years}} \cr
& {\text{SI for 2 years}} \cr
& {\text{ = 4}} \times {\text{2 = 8}}\% \cr
& {\text{CI for 2 years}} \cr
& {\text{ = 4 + 4 + }}\frac{{4 \times 4}}{{100}} \cr
& = 8.16\% \cr
& \operatorname{Required} \,CI \cr
& = \frac{{80}}{8} \times 8.16 \cr
& = Rs.\,81.60 \cr} $$
Was this answer helpful ?
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