Question

Find compound interest paid when a sum of 40,000 is invested for 2 years 6 months at 20% per annum compounded annually.

Answer 1

Answer:

20,000

Step-by-step explanation:

20%of 40000=8000

8000 for 2year and 6 month is

8000× 30/12=20,000

Answer 2

The required compound interest = Rs 23,097.6

Explanation:

The formula to find the compound interest earned on amount P in t years with growth rate of r compounded annually :-

$CI= P((1+\dfrac{r}{100})^t-1)$

As per given , we have

P= Rs 40 , 000 ,    r = 20%

and  $t=\text{2 years 6 months}=2+\dfrac{1}{2}\text{ years}=\dfrac{5}{2}\text{ years}$

[∵ 1 year = 12 months then $\dfrac{1}{2}$ year = 6 months]

Put all values in the formula ,

$CI=40000((1+\dfrac{20}{100})^{\frac{5}{2}}-1)$

$CI=40000((1.20)^{\frac{5}{2}}-1)$

$CI=40000(1.57744-1)$

$CI=40000(0.57744)=23097.6$

Hence, the required compound interest = Rs 23,097.6

# Learn more :

7. At 4% per annum, the difference between

simple and compound interest for 2 years on a

certain sum of money is Rs. 80. Then the principal

sum is (the interest is compounded annually)

(a) Rs. 40,000

(b) Rs. 50,000

(c) Rs. 5,000

(d) Rs. 4,000​

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