Question

A certain sum of money gives $ 510 as compound interest 12¹/₂ % per annum for 2 years. Find the simple interest on the same sum of money at the same rate for the same period of time.

Answer 1

$127.5

Explanation:

Given data

P = $510

r= 12.5%

t= 2 years

The expression for simple interest is

SI= PRT/100

SI= 510*12.5*2/100

SI= 12750/100

SI= 127.5

Hence the Simple interest is $127.5