Question

12. Faiza borrowed from Mahila Samiti a sum of 625 to purchase a sewing machine. If the rate of interest is 4%
per annum, what is the compound interest that she pays after two years?​

Answer 1

Answer:

THE CI TO BE PAID IS ₹51

Step-by-step explanation:

PARAMETERS GIVEN,

PRINCIPAL=₹625

RATE%=4%

TIME=2 YEARS

SO,

A.T.Q.,

A=P(1+R/100)ⁿ

 = 625(1+4/100)²

 = 625(104/100)²

 = (625*104*104)/100*100

 = 67,60,000/10,000

 = ₹676

SO,

CI = A-P

    = ₹676-₹625

    = ₹51

I HOPE YOU UNDERSTOOD THE QUESTION!!!