If the simple interest on a sum of money for 2 years at 5% per annum…

Question

If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time?

Accepted Answer

Option A. Rs. 51.25. Answer & Solution Answer: Option A Solution: & Sum = Rs.\, ( 50 × 1002 × 5 ) & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,500 & Amount = Rs.\, [ 500 × ( 1 + 5100 )^2 ] & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\, ( 500 × 2120 × 2120 ) & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\…