Question

₹4200 for 1 1/2 years at 20% per annum annually

Answer 1

The compound interest accumulation formula :

P(1 + i)ⁿ = A

A = Accumulated amount

P = principle amount

i = interest rate

n = Time in years

CALCULATIONS

In our case :

P = 4200

i = 20%

n = 1.5 years

4200 × (1.20)^1.5 = 5521.04

Rs 5521.04