Given:
Simple interest= ₹ 2400
Interest rate= 8% per annum
Time=2 years
Simple interest (SI) = PTR/100
Where P is principle amount, T is time taken, R is rate per annum
2400 = (P × 2× 8)/ 100
On rearranging we get,
P = 2400 × 25/4
= ₹ 15000
∴ the sum is ₹ 15000.
To find the amount we have the formula,
Amount (A) = P (1+(R/100))n
Where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴ A = 15000 (1 + 8/100)2
⇒ A = 15000 (108/100)2
⇒ A = 600 (27/25)2
⇒ A = 24 (27) (27)
⇒ A = ₹ 17496
∴ Compound interest = A – P
= 17496 – 15000 = ₹ 2496