Question

Find the compound interest if P=5000rs rate=5% T=2years​

Answer 1

Given:

Principal = ₹5,000

Rate% = 5% per annum

Time = 2 years

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To find:

Compound Interest.

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Solution:

In order to find the Compound Interest, first we have to find the amount, which is given by the formula:

$\sf \: Amount = P(1 + \dfrac{R}{100})^{n}$

Where,

P is Principal

R is Rate of interest

n is time period

On substituting the values in the formula,

$\sf Amount = 5000(1 + \dfrac{5}{100})^{2}$

$\sf Amount = 5000(1 + \dfrac{1}{20})^{2}$

$\sf Amount = 5000( \dfrac{21}{20})^{2}$

$\sf Amount = 5000 \times \dfrac{21}{20} \times \dfrac{21}{20}$

$\sf Amount = 5000 \times \dfrac{441}{400}$

$\sf Amount = 50 \times \dfrac{441}{4}$

$\boxed {\bf {\green {Amount = Rs.\ 5,512.5}}}$

Now,

C.I. = A - P

Where,

C.I. is Compound Interest

A is Amount

P is Principal

So,

C.I. = ₹(5,512.5 - 5,000)

$\boxed {\bf {\orange {C.I. = Rs.\ 512.5}}}$

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Final answer:

Compound Interest is of ₹512.5.

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Important Formulas:

• $\sf \: Amount = P(1 + \dfrac{R}{100})^{n}$
• C.I. = A - P
• S.I. = $\sf \dfrac {PRT}{100}$