Question

ercise 10.3 Calculate the amount by using the formula for compound interest: (0 Principal = 500, Rate = 4% p.a., Time 2 2 years.​

Answer 1

Answer:

Amount = 540.8

Given

Principal = 500

Rate = 4% p.a

Time = 2 years

To Calculate

Amount by using formula used for compound interest

Solution

\bf C.I. = p((1 + \frac{r}{100} ) {}^{t} - 1)C.I.=p((1+100r)t−1)

\bf \to 500((1 + \frac{4}{100} ) {}^{2} - 1)→500((1+1004)2−1)

\bf \to 500((1 + \frac{2}{50} ) {}^{2} - 1)→500((1+502)2−1)

\bf \to 500(( \frac{50 + 2}{50} ) {}^{2} - 1)→500((5050+2)2−1)

\bf \to 500( \frac{52}{50} \times \frac{52}{50} - 1)→500(5052×5052−1)

\bf \to 500( \frac{2704}{5} - 1)→500(52704−1)

\bf \to 500( \frac{2704 - 2500}{2500} )→500(25002704−2500)

\bf \to 5 \cancel{00 }\times \frac{204}{25 \cancel{00} }→500×2500204

\bf \to \frac{204}{5}→5204

\bf \to 40.8→40.8

Amount =

\bf \implies C.I + Principal⟹C.I+Principal

\bf \implies 40.8 + 500⟹40.8+500

\bf \implies 540.8⟹540.8