Question

Find AMOUNT if principal is 400 rupees at the rate of 5% compounded annually for 2 years.​

Answer 1

Given :

• ➻ Principal = Rs. 400
• ➻ Rate = 5 %
• ➻ Time = 2 years

${\underline{\rule{200pt}{3pt}}}$

To Find :

• ➻ Amount = ?

${\underline{\rule{200pt}{3pt}}}$

Solution :

~ Formula Used :

$\large{\color{blue}{\bigstar}} \: \: {\underline{\boxed{\color{red}{\sf{ A = P \bigg\lgroup 1 + \dfrac{R}{100} \bigg\rgroup ^T }}}}}$

Here :

• ➳ A = Amount
• ➳ P = Principal
• ➳ R = Rate
• ➳ T = Time

$\qquad{━━━━━━━━━━━━━━━━━━━━━}$

~ Calculating the Amount :

${\longmapsto{\qquad{\rm{ A = P \bigg\lgroup 1 + \dfrac{R}{100} \bigg\rgroup ^T }}}} \\ \\ \ {\longmapsto{\qquad{\rm{ A = 400 \bigg\lgroup 1 + \dfrac{5}{100} \bigg\rgroup ^2 }}}} \\ \\ \ {\longmapsto{\qquad{\rm{ A = 400 \bigg\lgroup \cancel\dfrac{105}{100} \bigg\rgroup ^2 }}}} \\ \\ \ {\longmapsto{\qquad{\rm{ A = 400 \bigg\lgroup 1.05 \bigg\rgroup ^2 }}}} \\ \\ \ {\longmapsto{\qquad{\rm{ A = 400 \times 1.05 \times 1.05 }}}} \\ \\ \ {\longmapsto{\qquad{\rm{ A = 400 \times 1.1025 }}}} \\ \\ \ {\qquad{\textsf{ Amount = {\color{maroon}{\sf{ ₹ \: 441}}}}}}$

$\qquad{━━━━━━━━━━━━━━━━━━━━━}$

Therefore :

❝ Amount on Rs. 400 is ₹ 441. ❞

$\\ {\underline{\rule{300pt}{9pt}}}$

Answer 2

Answer:

441

Principal, P = Rs. 400

Rate of interest, r = 5%

Number of years, n = 2

∴ Amount = P(1 + r/100)n = 400 × (1 + 5/100)2 = 400 × (21/20)2 = 400 × 441/400 = Rs. 441