Question

find the amount for the following when the interest is compounded annually where principal is ₹1200 R=4% oer annum and time is equal to 2 years​

Answer 1

• Amount is ₹1297.92 .

Step-by-step explanation:

Given:-

• Principal is ₹ 1200.
• Rate of interest is 4%.
• Time period is 2 years.

To find:-

• Amount when the interest is compounded annually.

Solution:-

We know that,

• Formula for Amount when interest is Compounded annually is :

$\boxed{ \star \: \sf \bold{Amount = P(1 + \cfrac{R}{100})^{n} }}$

In which,

• P is principal
• R is Rate of interest.
• n is time period.

P = ₹1200

R = 4%

n = 2 years

Put, P, R and n in formula :

$\longrightarrow \sf \bold{1200 \times (1 + \cfrac{4}{100})^{2} }$

$\longrightarrow \sf \bold{1200 \times ( \dfrac{100 + 4}{100} )^{2} }$

$\longrightarrow \sf \bold{1200 \times {( \cfrac{104}{100} )}^{2} }$

$\longrightarrow \sf \bold{12 \cancel{00} \times \cfrac{104}{1 \cancel{00}} \times \cfrac{104}{100} }$

$\longrightarrow \sf \bold{ \cfrac{129792}{100} }$

$\longrightarrow \sf \bold{1297.92}$

Therefore,

Amount is ₹1297.92 .