Question

Find the amount to be paid at the end of 2 years on ₹5800 at 5% per annum
compounded annually.

Answer 1

Step-by-step explanation:

Hint: We need the formula for finding the amount. We use the formula A=P[1+r100]n

where, A

is the amount, P

is principal amount, r

is the rate percent yearly (or every fixed period) and n

is the number of years (or terms of the fixed period). Since all the values are given, substituting in the above formula we get the required amount.

Complete step-by-step answer:

List out the given data, that is

Rate per annum, r=5

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”.

Answer 2

SI= P*R*T/100
Si = 5,800*5*2
= 5,800*10
= 58,000