Question

FIND THE AMOUNT AND THE COMPOUND INTEREST. |

Q. PRINCIPAL = 4000 , RATE = 7.5 , N (DURATION , YEARS) = 2​

Answer 1

Answer:

If ‘P’ represents principal amount, ‘N’ represents the time duration and ‘R’ represents the rate of interest then the Compound interest (CI) with these parameters is given by the formula:

CI=P×(1+R100)N

Complete step-by-step answer:

We are given the principal amount as Rs. 4000

Now we also have the rate of simple interest that is 7.5% and we are given that the time duration is 2 years.

We are asked to find the compound interest.

So, let’s apply the formula to find the compound interest.

⇒CI=P×(1+R100)N

As we have P=4000, N=2, R=7.5 we can put these values above and get

⇒CI=4000×(1+7.5100)2

Let’s first calculate the terms inside the bracket and then multiply it by 4000

⇒CI=4000×(1+0.075)2=4000×(1.075)2

⇒CI=4000×1.155625=4622.5

So now we have compound interest as 4622.5/-

So, the correct answer is “4622.5 R.s .