The compound interest on a certain amount for 2 years at 4% per annum is ₹ 1,020, if interest is compounded annually. Find the simple interest on that amount for 2 years at 4% per annum?
Solution-
Let the principal amount =1000
Compound interest on 1000 Rs for 2 years at 4%=81.6
ATQ-
81.6=1020
1=1020/81.6
1000= (1020/81.6) ×1000
P=12500
Now- Simple interest for 2 years at 4% per annum
=(12500×2×4)/100
=1000Rs.
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