Question

find amount and the compound interest on Rs 4000 at 10% p.a. for 2 1/2 years.
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Answer 1

Answer:

The amount is Rs 5076.23

Compound Interest is Rs 1076.23

Step-by-step explanation:

The amount, $A$ after compounding a Principal amount, $P,$ on an interest rate, $i$, for a period of $t$ years is given as;

$A=P*(1+\frac{i}{100})^t$

In our case;

$P= 4000\\i=10%\\t=2.5 years$

Therefore;

$A=4000*(1+\frac{10}{100})^{2.5}\\ A=4000*1.1^{2.5}\\A=5076.234825$

The amount is Rs 5076.23

The compound interest can be computed as the difference between the final amount and the principal amount, ie.

Interest=5076.23-4000

Interest=Rs 1076.23