Question

find out compounder interest on Rs 40000 for 5 years at 10% compounder annually​

Answer 1

Correct Question

Find out the compound interest on ₹40000 for 5 years at 10% compound annually.

Answer

Given :

Principle : ₹40000

Rate of interest : 10%

Time : 5 years

To find :

The compound interest.

Solution :

First, we should find the compound interest.

Compound interest :

$\sf \dashrightarrow Amount = Principle \bigg( 1 + \dfrac{Rate}{100} \bigg)^{Time}$

$\sf \dashrightarrow 40000 \bigg( 1 + \dfrac{10}{100} \bigg)^{5}$

$\sf \dashrightarrow 40000 \bigg( \dfrac{100 + 10}{100} \bigg)^{5}$

$\sf \dashrightarrow 40000 \bigg( \dfrac{110}{100} \bigg)^{5}$

$\sf \dashrightarrow 40000 \bigg( \dfrac{11}{10} \bigg)^{5}$

$\sf \dashrightarrow 40000 \bigg( \dfrac{11^5}{10^5} \bigg)$

$\sf \dashrightarrow 40000 \bigg( \dfrac{161051}{100000} \bigg)$

$\sf \dashrightarrow 4 \bigg( \dfrac{161051}{10} \bigg)$

$\sf \dashrightarrow \dfrac{161051 \times 4}{10} = \dfrac{644204}{10}$

$\sf \dashrightarrow \cancel \dfrac{644204}{10} = 64420.4$

Now, we can find the compound interest.

Compound interest :

$\sf \dashrightarrow Amount - Principle$

$\sf \dashrightarrow 64420.4 - 40000$

$\dashrightarrow$₹$\sf 24420.4$

Hence, the compound interest is ₹24420.4.