6400 RS for 2 years at 6% per annum compounded annually.
Answer should come 7225 RS.
Answers
Answer:
P=Rs.6400,n=2years,R=
2
15
%
⇒ A=P(1+
100
R
)
n
⇒ A=6400(1+
2×100
15
)
2
⇒ A=6400×
200
215
×
200
215
⇒ A=Rs.7,396
⇒ Compoundinterest=A−P
⇒ CompoundInterest=Rs.7,396−Rs.6,400=Rs.996
Answer:
The problem is about calculating the amount of money that will be earned by investing Rs. 6400 for 2 years at a compound interest rate of 6% per annum, compounded annually.
Compound interest is the interest earned on both the principal amount and the accumulated interest from previous periods.
The formula for calculating the amount of money after n years at a compound interest rate of r% per annum, compounded annually, is given by
A = P * (1 + r/100)^n,
where A is the amount of money, P is the principal amount, r is the interest rate, and n is the number of years.
In this problem, P = Rs. 6400, r = 6%, and n = 2 years.
Substituting these values in the formula, we get:
A = 6400 * (1 + 6/100)^2
= 6400 * (1.06)^2
= 6400 * 1.1236
= Rs. 7206.40 (rounded to 2 decimal places)
Therefore, the amount of money earned after 2 years at a compound interest rate of 6% per annum, compounded annually, is Rs. 7206.40.
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