Find the amount and compound interest on rs 4000 at 12% p.A for 2 years, compound annually
Answers
Answer:
Step-by-step explanation:
P = Rs. 4000 , n = 2yrs , r = 12%
Amount = P(1+r/100)ⁿ
= 4000 ( 1 + 12/100)²
= 4000 ( 112/100 )²
= 4000 x 112/100 x 112/100
= 5017 .60
C.I = Amount - principal
= 5017.60 - 4000
= Rs. 1017.60
The amount will be Rs.5017.6 with a compound interest of Rs.1017.6
Step-by-step explanation:
Given:
Principal (P)= Rs.4000
Rate of interest (R)= 12%
Period (n)= 2 years
To find:
Compound interest (CI) compounded annually
Solution:
We use the formula to calculate the amount
A = P[1 +(R/100)]^n
All the values are given, substituting those
A= 4000[1+(12/100)]^2
∴ A= 4000[1+(3/25)]²
∴ A= 4000[25+3/25]²
∴ A= 4000[28/25]²
∴ A= 4000 x 28/25 x 28/25
∴ A= 4000 x 1.12 x 1.12
∴ A= Rs. 5017.6
Now, This is the total amount (A)
To find CI we know,
CI= A-P
∴ CI= 5017.6- 4000
∴ CI= Rs.1017.6
Thus, the amount will be Rs.5017.6 & the compound interest will be Rs.1017.6
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