Question

Find the amount and compound interest on ₹2500 at 15% per annum for 2 years

Answer 1

Answer:

Amount = Rs.3306.25

Compound interest = Rs.806.25

Step-by-step explanation:

P = principal (initial amount) in Rs. = 2500

R = rate of interest per cent per year = 15

T = time period in years = 2

A = final amount at the end of T years

CI = Compound interest earned = A - P

We are assuming that compounding is done annually.

A = P(1 + R/100)^T

  = 2500*(1 + 15/100)^2

  = 2500*(1.15)^2

  = 2500*1.3225

  = 3306.25

CI = A - P

   = 3306.25 - 2500

   = 806.25

Final Answer: Amount = Rs.3306.25; Compound Interest = Rs.806.25