The compound interest on a certain amount for 2 years at 4% per annum is ₹ 1,428 if interest is compounded annually. Find the simple interest on that amount for 2 years at 4% per annum?
Let the principal amount =1000 Compound interest on 1000 Rs for 2 years at 4%=81.6 ATQ- 81.6=1428 1=1428/81.6 1000= (1428/81.6) ×1000 P=17500 Now- Simple interest for 2 years at 4% per annum = (17500×2 ×4)/100 =1400Rs.
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