Question

find the amount and the compound interest on rs 4,000 for 2 years at 5% per annum compounded annually​

Answer 1

Answer:

Step-by-step explanation:

Principal for the 1st year = ₹ 4,000

Interest for the 1st year = ₹ [4000 x 5% x 1]

                                       = [4000 x 5/100 x 1] = ₹ 200

Amount at the end of 1st year = ₹ (4000 + 200) = ₹ 4,200

Principal for the 2nd year = ₹ 4,200

Interest for the 2nd year = ₹ [4,200 x 5% x 1]

                                         = ₹ [4200 x 5/100 x 1] = ₹ 210

Amount at the end of 2nd year = ₹ (4200 + 210) = ₹ 4,410

Therefore, C.I. for 2 years = (Amount) - (Original Principal)

                                           = ₹ (4,410 - 4000 ) = ₹ 410

Therefore,Amount = ₹ 4,410 and C.I. = ₹ 410