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Simple interest on a certain sum of money at the rate of 5% per annum for 4 years is Rs. 800. What will…

From \(SI = \frac{P\times 5\times 4}{100} = 800\) we get \(P = 4000\). Compound interest is \(4000\left[(1.05)^4-1\right] = 4000\times 0.2155 = 862\) rupees approximately.

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Simple interest on a certain sum of money at the rate of 5% per annum for 4 years is Rs. 800. What will be the compound interest on the same sum for the same period and at the same rate of interest?

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From SI=P×5×4100=800SI = \frac{P\times 5\times 4}{100} = 800 we get P=4000P = 4000. Compound interest is 4000[(1.05)4−1]=4000×0.2155=8624000\left[(1.05)^4-1\right] = 4000\times 0.2155 = 862 rupees approximately.

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