The compound interest on a certain sum of money at 5% p.a. for 2 years is Rs. 246
Calculate the Simple Interest on the same sum for three years.

Question

The compound interest on a certain sum of money at 5% p.a. for 2 years is Rs. 246
Calculate the Simple Interest on the same sum for three years.

amistre64 · Answer

5% pa,  what does the pa represent?

amistre64 · Answer

246 = P(1+.05/n)^(2n)

246(1+.05/n)^(-2n) = P

simple interest = 246(1+.05/n)^(-2n) * .05 * 3

maybe?

amistre64 · Answer

ahh, pa, per annum (once a year so n=1)

anonymous · Answer

i'm asking u n u r asking me instd? :p
r'nt u confident?

amistre64 · Answer

this is a site for studying, not for direct answers.  Therefore its best if you can spot any errors in assumptions that I am making ....

amistre64 · Answer

the vernacular tends to throw me at times .... and it helps that you have more context related to a solution than I do

amistre64 · Answer

since pa relates to a compounding of once a year, then the "n" variable is just 1

simple interest is a simple formula:  I = Prt

using the calculated P, and the stated r and t ... i cant see anywhere that I might have missed it