Question

(1) Find the compound interest of Rs 40001- at 5% per annum for 1 year if interest is compound annually.​

Answer 1

Given :

Principle : ₹40001

Rate of interest : 5%

Time : 1 year

To find :

The compound interest if it's compounded annually.

Solution :

To find the the compound interest, first we should find the amount.

Amount :

$\sf \dashrightarrow Amount = Principle \bigg( 1 + \dfrac{Rate}{100} \bigg)^{Time}$

$\sf \dashrightarrow A = 40001 \bigg( 1 + \dfrac{5}{100} \bigg)^{1}$

$\sf \dashrightarrow A = 40001 \bigg( \dfrac{100 + 5}{100} \bigg)^{1}$

$\sf \dashrightarrow A = 40001 \bigg( \dfrac{105}{100} \bigg)^{1}$

$\sf \dashrightarrow A = 40001 \bigg( \dfrac{21}{20} \bigg)^{1}$

$\sf \dashrightarrow A = 40001 \times \dfrac{21}{20}$

$\sf \dashrightarrow A = \dfrac{840021}{20}$

$\sf \dashrightarrow A = 42001.05$

Now, we can find the compound interest.

Compound interest :

$\sf \dashrightarrow Amount - Principle$

$\sf \dashrightarrow 42001.05 - 40001$

$\sf \dashrightarrow 2000.05$

Hence, the compound interest is ₹2000.05.