Step-by-step explanation

We have the difference

We have the differenceS.I - C.I = 105

We have the differenceS.I - C.I = 105And the principle value = 42000

We have the differenceS.I - C.I = 105And the principle value = 42000We know the formula of simple interest

We have the differenceS.I - C.I = 105And the principle value = 42000We know the formula of simple interest=P.R.T100

Here P = principle value, R = rate of interest and T= time

Putting the values in the formula

Putting the values in the formula=42000.r.2100

Putting the values in the formula=42000.r.2100=840r

Now we have to find the compound interest

Now we have to find the compound interestA = P(1+r100)t

Now we have to find the compound interestA = P(1+r100)tHere A = final amount

Now we have to find the compound interestA = P(1+r100)tHere A = final amountPutting the values

=42000(1+r100)2

= 42000(1+r10000+r50)

=42000+42r210+840r

Now we know that

C.I = A – P

C.I = 42000+42r210+840r

−42000

C.I = =42r210+840r

We have given in the question that the difference between the S.I and C.I is 105

S.I – C.I = 105

840r+

42r210−840r=105

42r210=105

42r2=105.10

r2=105.1042

r2=25

r=25−−√

r=5

Interest rate is 5

So, we have a rate of interest of 5%.

So, we have a rate of interest of 5%.Now we have to find the compound interest at second year

So, we have a rate of interest of 5%.Now we have to find the compound interest at second year We can find the compound interest

C.I = A – P

C.I = 42000(1+5100)2−42000

C.I = 42000(1+2510000+110)−42000

Therefore Rs = 4305

Note: Simple interest is based on the principal amount of a loan. Compound interest is based on the principal amount and the interest which is being added for every period of time.

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Step-by-step explanation:

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