Question

find the amount to be paid at end up to a year and to quit 2400 at 5% per annum (a) compounded annually (b) compounded half yearly​

Answer 1

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Principle amount, P=2400

Number of years, n=2

The amount to be paid in case of compound interest is A=?

We know the formula,

A=P[1+r100]n

Substituting we get,

⇒A=2400[1+5100]2

Taking L.C.M. in bracket and simplify, we get:

⇒A=2400[105100]2

Since square is there in the bracket, simplify it, we get:

⇒A=2400[2120]2

Removing square, we get:

⇒A=2400[21×2120×20]

Simply separating the numerator and denominator terms,

⇒A=2400×21×21400

Simple division, we get:

⇒A=6×21×21

Multiplying we get,

⇒A=2646

.

Hence the required amount is 2646 rupees.

That is, the amount Rs. 2646 to be paid at the end of 2 years on Rs. 2400 at 5% per annum compounded annually.

So, the correct answer is “2646”.