Question

Daljit received a sum of Rs. 40000 as a loan from a finance company. If the

rate of interest is 7% per annum compounded annually, calculate the

compound interest that Daljit pays after 2 years.​

Answer 1

Given,

Principal(P)=Rs.40000

Rate(R)=7%

Time(T)=2 years

Formula used:

The compound interest is given by

A=P[1+ R/100]t

Where

A=Amount

P=Principal

R=Rate

T=Time

Apply the above formula, we get

A=Rs.45796

Now, the compound interest will be

Now, the compound interest will beC.I=A−P

Now, the compound interest will beC.I=A−PC.I=45796−40000

Now, the compound interest will beC.I=A−PC.I=45796−40000C.I=Rs.5796

Now, the compound interest will beC.I=A−PC.I=45796−40000C.I=Rs.5796Hence,

Now, the compound interest will beC.I=A−PC.I=45796−40000C.I=Rs.5796Hence, Compound interest=Rs.5796.

Answer 2

Answer:

Answer is Rs. 5656.

Step-by-step explanation:

Amount =

$40000(1 + \frac{7}{100} ) ^{2}$

$40000 \times \frac{107}{100} \times \frac{107}{100}$

$4 \times 107 \times 107$

$45656$

so, the amount is 45656.

compound interest is = 45656 - 40000

= Rs. 5656

since the answer is Rs. 5656