Compound interest for a certain amount at 13% p.a for 2 years
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5
13+13+(13×13)/100
26+1.69
27.69 % will be the answer
26+1.69
27.69 % will be the answer
Answered by
0
General formula related to Compound interest is as below:
CI = A - P
where,
A is the Final amount
P is the Principal amount
Final amount is generated using the formula,
A = P (1 + r/n)^ (nt)
where,
r is the rate of interest (decimals)
n is the no. of times the amount is compounded
( for annually n=1 ; semi-annually n=2, quarterly n=4, monthly n=12)
t is the time period of deposit
In the given scenario, lets assume the amount is compounded annually.
r = 0.13 ; n = 2
CI = P( 1+0.13/1)^2 - P
= 1.28P - P
CI = 0.28 P
Therefore, Compound interest will be 28% of the sum of amount given.
Hope it helps. Thanks!
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