Given:
Time = 2 years, Simple Interest = 500, rate = 10%
Formula used:
Simple Interest = (Principal × Rate × Time)/100
See Also
Compound Interest CalculatorHow long will P40,000 amount to P51,200 if the simple interest rate is at 12% per annum?How long, to the nearest year, will it take an investment to triple if it is continuously compounded at 6% per year? | SocraticCompound Interest = Principal[(1 + rate/100)t – 1]
Calculation:
Let the principal be ‘P’.
Simple Interest = (Principal × Rate × Time)/100
⇒ 500 = (Principal × 10 × 2)/100
⇒ Principal = 2500
Compound Interest = Principal[(1 + rate/100)t – 1]
⇒ 2500[(1 + 10/100)2 – 1]
⇒ 525
∴ The compound Interest is Rs 525.
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