Question

If the compound interest on rs .300 in 2 years is will be simple interest on same for 100 years at the same rate ?

Answer 1

Compound interest and simple interest are two different methods of calculating interest on a principal amount. To find the simple interest on the same principal amount for 100 years at the same rate, we can use the formula: Simple Interest = Principal Amount × Interest Rate × Time.

Step-by-step explanation:

Compound interest and simple interest are two different methods of calculating interest on a principal amount. Compound interest takes into account the accumulated interest, while simple interest does not.

To find compound interest, we can use the formula:

Compound Interest = Principal Amount × (1 + Interest Rate)^Time - Principal Amount

For example, if the compound interest on Rs. 300 in 2 years is Rs. 15, then the principal amount is Rs. 300 and the time is 2 years. We can use these values to find the interest rate:

1. Rs. 15 = Rs. 300 × (1 + Interest Rate)^2 - Rs. 300
2. Rs. 15 + Rs. 300 = Rs. 300 × (1 + Interest Rate)^2
3. (Rs. 15 + Rs. 300) / Rs. 300 = (1 + Interest Rate)^2
4. (Rs. 315 / Rs. 300)^(1/2) - 1 = Interest Rate

Using a calculator, we can find that the interest rate is approximately 0.05 or 5%.

Now, if we want to find the simple interest on the same principal amount of Rs. 300 for 100 years at the same rate of 5%, we can use the formula:

Simple Interest = Principal Amount × Interest Rate × Time

Simple Interest = Rs. 300 × 0.05 × 100 = Rs. 1500

So, the simple interest on Rs. 300 for 100 years at the same rate will be Rs. 1500.