Question

Find the amount if ₹ 2,000 is invested for 2 years at 4% p.a. compounded annually.

Answer 1

Answer:

2164

Step-by-step explanation:

Using formula

$A = {P (1 + \frac{r}{n} )}^{nt}$

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

P = 2000

r=4%=0.04

n=2

t=2

$A = {2000 (1 + \frac{0.04}{2} )}^{2 \times 2} \\ = 2000 {(1 + 0.02)}^{4} \\ = 2000 {(1.02)}^{4} \\ = 2000 \times 1.082 \\ = 2164$

Amount after two years is 2164

Answer 2

Answer:2168

Step-by-step explanation:Using formula

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

P = 2000

r=4%=0.04

n=2

t=2

Amount after two years is 2164