Q3 of 14 Page 90

The simple interest at 5% got for a certain amount after 2 years is 200 rupees. If interest is compounded annually, what would be the interest for same amount at the same rate after 2 years

Simple Interest=(n=number of years)

SI=


= 20


Amount after 2 years = 200+20


=220


For calculating Interest =


First Year’s balance= 200Rs


First Year’ Interest =


= 200


Now, balance after the first year= First Year’s balance +First Year’s Interest


= 200+10


= 210Rs


Second Year’s Balance= 210Rs


Second Year’s Interest=


= 10.5Rs


Balance after the second year = Second Year’s Balance + Second Year’s Interest


= 210+10.5


= 220.5Rs


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