In: Finance
Question i
Interest in case of simple interest=Principal*rate/100*number of years=10000*10/100*5=P 5000
Total amount receivable after 5 years=Principal + Interest=P10000+5000=P 15000
Question ii
Amount receivable in case of compound interest=Principal*(1+interest)^number of years
= P 10000*(1.1)^5 = P 10000*1.61051= P 16,105.1