Question

calculate the amount by using by the formula for compound interest .

1. principal is equal to rupees 500 is equal to 4% P.a., time= 2 years.

2. principal = rupees 640 rate= 5% p.a., time 3years

3. principal is = rupees1200 rate = 10% p.a.,time = 2 years​

Answer 1

Solution
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Given P=Rs.500,R=12% and n=2.

Now total amount when the principle compounded after 2 years will be

A=P(1+
100
r
​
)
n

=500×(1+
100
12
​
)
2

=500×(
100
112
​
)
2

=500×(
100
112
​
)×(
100
112
​
)
=627.20.

So the amount will be Rs.627.20 and compound interest will be Rs.(627.20−500)=Rs.127.20.

Answer 2

Principal =Rs 640, rate =5% p.a , time 3 years