Question

3. Calculate compound interest for Rs.2,500 for 4 years at 8% p.a. Calculate the compound interest

Answer 1

Solutions :-

We have,

Principle = p = Rs 2,500
Time = t = 4 years
Rate = r = 8% p.a
Compound Interest = C.I = ?
Amount = A = ?


Find the Amount :-

A = p (1 + r)^t
= 2500 (1 + 8%)⁴
= 2500 (1 + 0.08)⁴
= 2500 (1.08)⁴
= 2500 × 1.36048896
= 3401.2224

Find the Compound Interest :-

C.I = A - p
= Rs ( 3401.2224 - 2500)
= Rs 901.2224


Answer : Amount = Rs 3401.2224
Compound Interest = Rs 901.2224