Question

Find the compound interest for Rs 3500 for 2 years when interest is compounded anually at the rate 20%?

Answer 1

Answer:

Rs 1540

Formula

compound interest={(1+rate%)^t)-1}

Given

amount=3500

time=2 years compounded annually

rate=20%

Solution

ci=3500{(1+0.2)^(2*1)-1}

ci=1540 Rs