Question

2. Vivek invested 50,000 rupees in a nationalised bank for 2 years at the rate of 9 p.c.p.a. at compound interest. Calculate the amount and compound interest at the end of 2 years. ( Find compound interest and amount at the end of 2 years )​

Answer 1

The amount will Vivek receive from the bank at the end of 2 years is Rs.59405.

Step-by-step explanation:

Given : Vivek invested Rs.50000 in a nationalized bank for 2 years at the rate of 9 p.c.p.a. at compound interest.

To find : What amount will Vivek receive from the bank at the end of 2 years?

Solution :

Applying compound interest formula,

A=P(1+r)^tA=P(1+r)

t

Where, A is the amount

P is the principal P=Rs.50000

r is the rate of interest r=9%=0.09

t is the time t=2 years.

Substitute the value in the formula,

A=50000(1+0.09)^2A=50000(1+0.09)

2

A=50000(1.09)^2A=50000(1.09)

2

A=50000\times 1.1881A=50000×1.1881

A=59405A=59405

Therefore, The amount will Vivek receive from the bank at the end of 2 years is Rs.59405.