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40 vote

For a certain amount, simple interest for 2 years at the rate of 12.5% is Rs. 800.Find the compound interest for 2 years for the same amount at the same rate of interest?

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For a certain amount, simple interest for 2 years at the rate of 12.5% is Rs. 800.Find the compound interest for 2 years for the same amount at the same rate of interest?


1). Rs. 800
2). Rs. 850
3). Rs. 900
4). Rs. 950


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1 answers

29 vote
Answered by on | Votes 29 |

Let the principle amount be P.

SI for 2 years = 800

⇒ P × 12.5 × 2/100 = 800

⇒ P = 3200

CI for 2 years = 3200(1 + 12.5/100)2 - 3200

⇒ 3200(1 + 1/8)2 - 3200

⇒ 3200(9/8)2 - 3200

CI = 4050 - 3200

∴ CI = Rs. 850

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