Question

2) Interest on 9000 at the rate of 5% for 4 year is
$21 {?}^{?}$
​

Answer 1

Answer:

Simple interest = 1800 and Compound interest = 1940

Step-by-step explanation:

Given : Principle amount 'P' = 9000

            Rate of interest  'R' = 5%

           Time T = '4' years

           Interest I =?

Solution : Simple interest = PTR/100

                                          = 9000 x 4 x 5/100

                                          = 90 x 20

                                          = 1800

Compounded  amount A = P(1 + R/100)^T

                                 = 9000 x (1 + 5/100 )^4

                                 = 9000x 1.05 x 1.05 x 1.05 x 1.05

                                 = 9000 x 1.22

                                 = 10940

Compound interest = Amount - principal

                                = 10940 - 9000

                                 = 1940