Question

3.
6. Using C.I. formula, calculate the amount and compound interest on
(a) 40,000 for 2 years at 9% p.a. interest being paid annually.
(b) 5000 for 2 years at 10% p.a. interest being paid annually.​

Answer 1

Answer:

a) Amount : 47524

Compound Interest : 7524

b) Amount : 5050

Compound Interest : 50

Step-by-step explanation:

$a) \: \: \: A = P {(1 + \frac{R}{100})}^{N} \\ \: \: \: = 40000( {1 + \frac{9}{100} )}^{2} \\ \: \: \: = 40000 \times {(1.09)}^{2} \\ \: \: \: = 40000 \times 1.1881 \\ \large{ \boxed{ = \underline{ \underline{47524}}}} \\ \\ Interest = Amount - Principal \\ \: \: \: \: = 47524 - 40000 \\ \large{ \boxed{= \underline{ \underline{7524}}}} \\ \\ b) \: \: \: A = P {(1 + \frac{R}{100})}^{N} \\ \: \: \: = 5000( {1 + \frac{10}{100}) }^{2} \\ \: \: \: = 5000( {1 + 0.1 )}^{2} \\ \: \: \: \: \: = 5000 \times (1 + 0.01) \\ \: \: \: = 5000 \times 1.01 \\ \: \: \: \large{ \boxed{= \underline{ \underline{5050}}}} \\ \\ Interest = Amount - Principal \\ \: \: \: \: = 5050 - 5000 \\ \large{ \boxed{ = \underline{ \underline{50}}}}$