Question

Find out the compound
intrest
For ₹ 2000 for 4 years
at 4% P.A.​

Answer 1

Given :

Principle : ₹2000

Rate of interest : 4%

Time : 4 years

To find :

The compound interest.

Solution :

First, we should find the amount.

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

$\sf \dashrightarrow 2000 \bigg( 1 + \dfrac{4}{100} \bigg)^{4}$

$\sf \dashrightarrow 2000 \bigg( \dfrac{100 + 4}{100} \bigg)^{4}$

$\sf \dashrightarrow 2000 \bigg( \dfrac{104}{100} \bigg)^{4}$

$\sf \dashrightarrow 2000 \bigg( \dfrac{26}{25} \bigg)^{4}$

$\sf \dashrightarrow 2000 \bigg( \dfrac{26^4}{25^4} \bigg)$

$\sf \dashrightarrow 2000 \bigg( \dfrac{456976}{390625} \bigg)$

$\sf \dashrightarrow 16 \bigg( \dfrac{456976}{3125}\bigg)$

$\sf \dashrightarrow \dfrac{16 \times 456976}{3125} = \dfrac{7311616}{3125}$

$\sf \dashrightarrow \cancel \dfrac{7311616}{3125} = 2339.71712$

Now, we can find the compound interest.

Compound interest :

$\sf \dashrightarrow Amount - Principle$

$\sf \dashrightarrow 2339.71712 - 2000$

$\sf \dashrightarrow Rs.339.71712$

Hence, the compound interest is ₹339.71712.