Question

Find the Amount at the end of 2 years on 1000 at 4% p.a. compounded actually​

Answer 1

Correct Question

Find the Amount at the end of 2 years on 1000 at 4% p.a. compounded annually.

Answer

Given :

Principle : ₹1000

Rate of interest : 4%

Time : 2 years

To find :

The amount at end of the period.

Solution :

$\sf \dashrightarrow Amount = Principle \bigg( 1 + \dfrac{Rate}{100} \bigg)^{Time}$

$\sf \dashrightarrow 2000 \bigg( 1 + \dfrac{4}{100} \bigg)^{2}$

$\sf \dashrightarrow 2000 \bigg( \dfrac{100 + 4}{100} \bigg)^{2}$

$\sf \dashrightarrow 2000 \bigg( \dfrac{104}{100} \bigg)^{2}$

$\sf \dashrightarrow 2000 \bigg( \dfrac{26}{25} \bigg)^{2}$

$\sf \dashrightarrow 2000 \bigg( \dfrac{26^2}{25^2}$

$\sf \dashrightarrow 2000 \bigg( \dfrac{676}{625}$

$\sf \dashrightarrow 16 \bigg( \dfrac{676}{5}$

$\sf \dashrightarrow \dfrac{16 \times 676}{5} = \dfrac{10816}{5}$

$\sf \dashrightarrow \cancel \dfrac{10816}{5} = 2163.2$

Hence, the amount at the end of 2 years is ₹2163.2.