Question

compound
2. Calculate the amount and compound interest by simple interest method on 3600 a
5% p.a. compounded annually for 2 years.
ulate the amount and the compound interest by simple interest method on 7 4800 f​

Answer 1

Step-by-step explanation:

P=Rs.4800

n=2 years

R=5

As we know that,

A=P(1+

100

R

)

n

∴A=4800(1+

100

5

)

2

⇒A=4800(

20

21

)

2

⇒A=

20×20

4800×21×21

=5292

Therefore,

Compound interest

=A−P

=5292−4800=Rs.492