Find the amount and the compound interest on 1600 rupees for 5 years at 6% per annum, compounded annually.
Please answer the question step-by-step.
Answers
The answer is Amount = Rs 8,480 and Compound interest = Rs 6,880
GIVEN
1600 rupees for 5 years at 6% per annum.
TO FIND
Amount and compound interest.
SOLUTION
We can simply solve the above problem as follows;
We apply the following formula to calculate the amount.
A = P(1+r/100)ᵗ
Where,
P = Principal amount = Rs 1600
r = Rate of interest = 6%
t = time = 5 years
A = 1600(1+6/100)⁵
= 1600( 1.06)⁵
= 1600 × 5.3
A = Rs 8480
Compound interest = Final Amount + Principal Amount
= 8480 - 1600
= 6,880
Hence, The answer is Amount = Rs 8,480 and Compound interest = Rs 6,880
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The compound interest on 1600 Rs for 5 years is 541.161 Rs and the total amount is 2141.160 Rs.
Given:
The principal amount = 1600 Rs
Rate of interest = 6% per annum [ compounded annually ]
Time period = 5 years
To find:
Find the amount and the compound interest on 1600 Rs.
Solution:
The formula we used to calculate the compound interest is given by
Compound interest = P( 1+ r/100)^t - P
where P = principal amount
r = Rate of interest
t = time period
From the given data and the above formula
Compound interest = 1600( 1+ 6/100)⁵ - 1600
= 1600( 1+0.06)⁵ - 1600
= 1600( 1.06)⁵ - 1600
= 1600(1.33822) - 1600
= 2141.160 - 1600
= 541.161
Total amount = Principal amount + compound interest
= 1600 + 541.161
= 2141.160
Therefore,
The compound interest on 1600 Rs for 5 years is 541.161 Rs and the total amount is 2141.160 Rs.
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