Question

Compound interest on 2500rupee 5 yrs at 4%per annum

Answer 1

We know,

A=P(1+R/100)^nt

A is amount

P is principle sum

R is rate of interest p.a

nt is time period..

therefore,

A=2500(1+0.04)^5 = ₹3025
hence, compound interest is equal to ₹(3025-2500)=₹525