Question

Find the amount of RS 4000 for 2 years at 5% per annum compound interest

Answer 1

Step-by-step explanation:

Compounded annually, Compound Interest will be Rs. 410

1st year will fetch you RS. 2000 in interest on Principal of RS. 4000

For 2nd year your principal will be 4200, and interest will be 210

So total compound interest will be Rs. 410/-

Using the Short cut method we can arrive thus:

Total increase =5+5+(5×5/100)=10.25

On Rs.4000 it will be 4000×41/400=Rs.410/