Question

4. Find the compound interest, correct to the
nearest rupee, on * 2,400 for 2.5 years at
5 percent per annum.
​

Answer 1

Answer:

We first calculate the C.I. for first 2 years and then the S.I.  next 21 year. 

For ,

N=2years

R=5 % 

=>P=Rs2,400

And on interest being compounded we have,

 Amount=P(1+100R)N=2,400×(1+1005)2=2,400×1.052=Rs2,646

So, C.I for first 2 years =.=A−P=Rs2,646=Rs2,400=Rs246

This, Rs2,646 is the principal for the next 21 year. 

So, S.I.=100PNR=1002,646×21×5=Rs66.15

Thus, total interest =Rs246+Rs66.15=Rs312.15

To the nearest rupee , it is Rs312