Question

Calculate the compound interest on principal 25000 for 4 year at 10% rate compound annually

Answer 1

Answer:

solved solved solved solved solved

Answer 2

Given :

• Principal = Rs. 25,000
• Time = 4 years
• Rate = 10%

To find :

• Compound Interest

Concept :

There are two ways to calculate compound interest.

➳ Direct formula to calculate compound Interest when Principal, rate and time is given :-

$\bf C.I. = P\Bigg[1 + \dfrac{r}{100}\Bigg]^n- P$

Or

Firstly, calculate the amount and then add the Principal and Amount, the resultant value will be the Compound Interest.

➳ Formula to calculate Amount when Principal, time and rate is given. :-

$\bf Amount = P\Bigg[1 + \dfrac{r}{100}\Bigg]^n$

➳ Formula to calculate Compound Interest when Amount and Principal are given :-

$\bf Compound \: \: Interest = Amount + Principal$

where,

• C.I. = Compound Interest
• P = Principal
• r = rate of interest

Solution :

$\\ \ \twoheadrightarrow \quad\bold{C.I. = P\Bigg[1 + \dfrac{r}{100}\Bigg]^n- P}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = 25000\Bigg[1 + \dfrac{10}{100}\Bigg]^4- 25000}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = 25000\Bigg[1 + \dfrac{1 \not0}{10 \not0}\Bigg]^4- 25000}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = 25000\Bigg[1 + \dfrac{1}{10}\Bigg]^4- 25000}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = 25000\Bigg[\dfrac{10 + 1}{10}\Bigg]^4- 25000}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = 25000\Bigg[\dfrac{11}{10}\Bigg]^4- 25000}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = 25000 \times \dfrac{11}{10} \times \dfrac{11}{10} \times \dfrac{11}{10} \times \dfrac{11}{10} - 25000}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = 25 \not0 \not0 \not0 \times \dfrac{11}{1 \not0} \times \dfrac{11}{1 \not0} \times \dfrac{11}{1 \not0} \times \dfrac{11}{10} - 25000}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = 25 \times 11 \times 11 \times 11 \times \dfrac{11}{10} - 25000}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = \dfrac{366,025}{10} - 25000}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = 366,02.50- 25000}$

$\\ \ \twoheadrightarrow \quad\bold{C.I. = 11,602.50}$

$\\ \underline{{\tiny{\maltese} } \quad\tt{Compound \: interest =Rs. \: 11,602.50}}$