Question

29. Find the compound interest on Rs. 20000 at 6% Per Annum for 4 years. A.5249.53
B. 5000
C.6000.89D. 4800.83

​

Answer 1

GiveN:-

• Principal = Rs.20,000
• Rate = 6% per annum
• Time = 4 years

To FinD:-

The Compound Interest.

SolutioN:-

We know that if we are given the Principal, Rate and time then the required formula for the Compound Interest is,

Compound Interest = [P(1 + R/100)ⁿ] - P

where,

• P is principal = Rs.20,000
• R is rate = 6%
• n is time = 4 years

Substituting the values in the equation,

➡ Compound Interest = [P(1 + R/100)ⁿ] - P

➡ Compound Interest = [20000(1 + 6/100)⁴] - 20000

➡ Compound Interest = [20000(1 + 3/50)⁴] - 20000

➡ Compound Interest = [20000(50+3/50)⁴] - 20000

➡ Compound Interest = [20000(53/50)⁴] - 20000

➡ Compound Interest = [20000 × 53/50 × 53/50 × 53/50 × 53/50] - 20000

➡ Compound Interest = [2 × 53/5 × 53/5 × 53/5 × 53/5] - 20000

➡ Compound Interest = [15780962/625] - 20000

➡ Compound Interest = [25249.53] - 20000

➡ Compound Interest = 25249.53 - 20000

➡ Compound Interest = Rs.5,249.53

Your answer is option (A).

Compound Interest is Rs.5,249.53.

Explore MorE:-

• Simple Interest = P × R × T/100

• Amount = Principal + Interest

• Interest = Amount - Principal

Answer 2

Question :

Find the compound interest on Rs. 20000 at 6% Per Annum for 4 years.

A. 5249.53

B. 5000

C. 6000.89

D. 4800.83

Given :

Principal = Rs.20,000

Rate = 6% per annum

Time = 4 years

To Find :

The Compound Interest.

Solution :

We know that if we are given the Principal, Rate and time then the required formula for the Compound Interest is,

Compound Interest = [P(1 + R/100)ⁿ] - P

where,

P is principal = Rs.20,000

R is rate = 6%

n is time = 4 years

Substituting the values in the equation,

➡ Compound Interest = [P(1 + R/100)ⁿ] - P

➡ Compound Interest = [20000(1 + 6/100)⁴] - 20000

➡ Compound Interest = [20000(1 + 3/50)⁴] - 20000

➡ Compound Interest = [20000(50+3/50)⁴] - 20000

➡ Compound Interest = [20000(53/50)⁴] - 20000

➡ Compound Interest = [20000 × 53/50 × 53/50 × 53/50 × 53/50] - 20000

➡ Compound Interest = [2 × 53/5 × 53/5 × 53/5 × 53/5] - 20000

➡ Compound Interest = [15780962/625] - 20000

➡ Compound Interest = [25249.53] - 20000

➡ Compound Interest = 25249.53 - 20000

➡ Compound Interest = Rs.5,249.53

Final Solution :

Your answer is option (A).

Compound Interest is Rs.5,249.53.

Additional Information :

• Simple Interest = P × R × T/100

• Amount = Principal + Interest

• Interest = Amount - Principal

Thank you.