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?

Q: 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?

Sum =Rs.(50 x 100/2x5) = Rs. 500. Amount =[Rs.500x(1+5/100)²] =Rs(500x21/20x21/20). =Rs. 551.25 C.I = Rs. (551.25 - 500) = Rs. 51.25

Rs.51.25
Rs.52
Rs.53
Rs.54

Correct Answer: Rs.51.25

Explanation:

Sum =Rs.(50 x 100/2x5)

= Rs. 500.

Amount

=[Rs.500x(1+5/100)²]

=Rs(500x21/20x21/20).

=Rs. 551.25

C.I

= Rs. (551.25 - 500)

= Rs. 51.25

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