Question

A sum of Rs. 50,000 is borrowed and the rate of interest is 10% per annum. What is the compound interest for 5 years​

Answer 1

Answer:

Interest =PRT/100

50000×10×5÷100

500×10×5

= 5000×5=25000

Answer 2

The compound interest for 5 years is Rs. 82265.45

Given,

Principal = Rs. 50000

Rate of Interest = 10% p.a.

Time = 5 years

To Find,

Compound Interest (CI)

Solution,

We shall use the formula of compound interest,

$CI = P(1+\frac{r}{n} )^{nt} -P$

where,

P = principal

r = rate of interest

n = number of times interest is compounded per year

t = time (in years)

$\implies CI = 50000(1+\frac{0.10}{12} )^{12\times5} -50000\\\\\implies CI=Rs.82265.45$

Here, we assume interest is compounded monthly.

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