Simple interest on a sum at 4% per annum for 2 years is Rs.80. The compound interest on the same sum for the same period is?

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Accepted Answer

principle = (interest x 100) / (time x rate) = Rs. (100 x 80)/(4 x 2) = Rs. 1000 ∴ C.I. =Rs.[{1000 x (1 + 4/100)2 - 1000}] = Rs. 81.60

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