If the simple interest on a sum of money for 2 years at

If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, the compound interest on the same at the same rate and for the same time is :

Given , Simple Interest S.I. = Rs. 50 , Time = 2 years , Rate = 5%
Using the given formula ,

Principal =	S.I. × 100
	Time × Rate

Principal =	50 × 100	= Rs. 500
	2 × 5

∴ C.I. = P			1 +	R		^T	− 1
				100

C.I. = 500			1 +	5		²	− 1
				100

C.I. = 500			1 +	1		²	− 1
				20

C.I. = 500			21		²	− 1
			20

C.I. = 500		441	− 1
		400

C.I. =	500 × 41	= Rs. 51.25
	400