Question

a person invested rupees 16000 in a scheme which offered 4% of interest compounded annually find the amount of money will get after 4 years

Answer 1

principal= p = 16000

interest per annum = i = 4%= 4/100 = 0.04

time = n = 4 years

compound interest = P{(1+i)^n -1}

= 16000{(1+0.04)^4 -1}

=16000{(1.04)^4 -1}

=16000 {(1.16985856 - 1)}

= 16000 {0.16985856}

= 2718