Question

Calculate the amount by using the formula for compound interest:
(i) Principal = 500, Rate = 4%
p.a., Time = 2 years.
​

Answer 1

solution ⤵️

1) principal (p)=500 ruppes

2)rate of interest (r)=4%

3)time =2 year

Amount =p(1+r/100)^t

therefore amount=500(1+4/100)²ruppes

amount =500(100+4/100)²ruppes

amount =500(104/100)²ruppes

amount=500×(26/25)²ruppes

amount=500×26/25×26/25=540.8 ruppes

therefore ci or compound Interest =540.8-500=40.8 ruppes

compound Interest =Amount - principal

when we find this In simple interest it will be like

amount =p+(ptr/100)

amount =500+(500×4×2/100)ruppes

amount =500+40=540 ruppes

simple interest =ptr/100

Answer 2

Question

Calculate the amount by using the formula for compound interest:

• Principal = 500, Rate = 4%p.a., Time = 2 years.

Answer

Amount = 540.8

Given

• Principal = 500
• Rate = 4% p.a
• Time = 2 years

To Calculate

• Amount by using formula used for compound interest

Solution

$\bf C.I. = p((1 + \frac{r}{100} ) {}^{t} - 1)$

$\bf \to 500((1 + \frac{4}{100} ) {}^{2} - 1)$

$\bf \to 500((1 + \frac{2}{50} ) {}^{2} - 1)$

$\bf \to 500(( \frac{50 + 2}{50} ) {}^{2} - 1)$

$\bf \to 500( \frac{52}{50} \times \frac{52}{50} - 1)$

$\bf \to 500( \frac{2704}{5} - 1)$

$\bf \to 500( \frac{2704 - 2500}{2500} )$

$\bf \to 5 \cancel{00 }\times \frac{204}{25 \cancel{00} }$

$\bf \to \frac{204}{5}$

$\bf \to 40.8$

Amount =

$\bf \implies C.I + Principal$

$\bf \implies 40.8 + 500$

$\bf \implies 540.8$