Question

find the compound interest for 2*1/2 years on 4000 rupees at 10%p.a if the interest is compounded yearly. sum​

Answer 1

Answer:

The compound interest after 2½ years at the rate of 10% is equal to 1076.40 Rupees

Explanation:

We first write the formula that will help in working out the question.

Compound interest accumulation function is given by:

A = P(1 + i)^n

We have :

A = accumulated amount

P = principal amount

I = interest

n = The period of accumulation.

From the question we have that:

P = 4000

n = 2½ years

I = 10%

Given the values, we can now substitute the values in the formula above.

We have:

A = 4000 × (1.10)^2½

Working out we have:

A = 4000 × 1.2691 = 5076.4

In 2½ years 4000 accumulates to 5076.40 at a rate of 10%.

The interest earned = Accumulated amount - Principal amount

This is given as follows:

= 5076.40 - 4000 = 1076.40

The interest is = Rs 1076.40

Answer 2

Explanation:

$\tt compound \: \: interest \: \: = rs.1076.40$