Question

A person gets Rs. 50,000 (Fifty thousand) as loan with interest rate 4% p.a. from a bank. If the interest is

calculated year wise, then the compound interest, after two years, is​

Answer 1

Answer:

• The compound interest after two years is Rs 4,080.

Step-by-step explanation:

Given that:

• Time period = 2 years
• Rate of Interest = 4% per annum
• Principal = Rs 50,000

To Find:

• The compound interest after two years.

Formula used:

1. A = P(1 + R/100)ᵀ
2. C.I. = A - P

Where,

• C.I. = Compound interest
• P = Sum of money/Principal
• R = Rate of Interest
• T = Time period

First finding the amount:

⟶ A = 50000(1 + 4/100)²

⟶ A = 50000(1 + 0.04)²

⟶ A = 50000(1.04)²

⟶ A = 50000 × 1.04 × 1.04

⟶ A = 54080

∴ Amount = Rs 54,080

Finding the compound interest:

⟶ C.I. = 54080 - 50000

⟶ C.I. = 4080

∴ Compound interest = Rs 4,080

Answer 2

${\bf{Given\::}}$

• Principle (P) = Rs.50000

• Rate (R) = 4%

• Time period (t) = 2 years

$\\ {\bf{To\: Find\::}}$

• Compound interest.

$\\ {\bf{Solution\::}}$

As we know that,

➣ Formula of compound interest is given as,

$\orange\bigstar\:{\Large\mid}\:\bf\purple{C.I\:=\:P\:\left(1\:+\:\dfrac{R}{100}\right)^{t}\:-\:P\:}\:{\Large\mid}\:\green\bigstar$

$\dashrightarrow\:\tt{C.I\:=\:50000\:\left(1\:+\:\dfrac{4}{100}\right)^{2}\:-\:50000\:}$

$\dashrightarrow\:\tt{C.I\:=\:50000\:\left(1\:+\:0.04\right)^{2}\:-\:50000\:}$

$\dashrightarrow\:\tt{C.I\:=\:50000\:\left(1.04\right)^{2}\:-\:50000\:}$

$\dashrightarrow\:\tt{C.I\:=\:50000\:\left(1.0816\:-\:1\right)\:}$

$\dashrightarrow\:\tt{C.I\:=\:50000\times{0.0816}\:}$

$\dashrightarrow\:\bf\pink{C.I\:=\:Rs.4080\:}$

∴ The compound interest after two years is Rs.4080.