Question

Calculate the compound interest on Rs. 6000 in 2 years at 5% per year.

Answer 1

Answer:- For 1st year

P=Rs.6000; R= 5%; T= 1 year

Interest = [6000×5×1]//[100] = Rs.300

And Amount = P+I = 6000 + 300

= Rs. 6300

For 2and year

P = Rs.6300 ;R = 5% and T = 1 year

Interest = [6300×5×1]//[100] =Rs.315

And Amount = P+I = 6300 + 315

= 6615

Compound Interest = Final Amount - Initial Principal = Rs 6615 - 6000

= Rs. 615