Question

find the amount and the compound interest if principal(p) =rs2000 rate= 5 p.c.p.a. and duration = 2 years​

Answer 1

$\bf { Amount = Rs. \: 2205 }$

$\bf { Compound \: Interest = Rs. \: 205 }$

Step-by-step explanation:

GIVEN

Principal = ₹2000

Rate = 5 p.c.p.a.

Time = 2 years

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TO FIND

Amount

Compound Interest

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We know that,

$Amount = Principal \times ( 1 + \dfrac{r}{100} )^{t}$

$Amount = 2000 \times ( 1 + \dfrac{5}{100} )^{2}$

$Amount = 2000 \times ( \dfrac{105}{100} )^{2}$

$Amount = 2000 \times \dfrac{105}{100} \times \dfrac{105}{100}$

$Amount = 2000 \times \dfrac{105}{100} \times \dfrac{105}{100}$

$Amount = 2000 \times 1.05 \times 1.05$

$Amount = 2205$

$\bf { Amount = Rs. \: 2205 }$

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We know that,

Compound Interest = Amount - Principal

Compound Interest = 2205 - 2000

Compound Interest = 205

$\bf { Compound \: Interest = Rs. \: 205 }$