Question

Find the compound interest if p=Rs 4000,N=2years,R=5p.c.p.a writing formula​

Answer 1

$\bf { Compound \: Interest = Rs. \: 410 }$

Step-by-step explanation:

GIVEN

Principal = ₹4000

TIME = 2 years

Rate = 5 p.c.p.a

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TO FIND

Compound Interest

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We know that,

$Amount = Principal \times ( 1 + \dfrac{r}{100} )^{t}$

$Amount = 4000 \times ( 1 + \dfrac{5}{100} )^{2}$

$Amount = 4000 \times ( \dfrac{105}{100} )^{2}$

$Amount = 4000 \times \dfrac{105}{100} \times \dfrac{105}{100}$

$Amount = 4000 \times 1.05 \times 1.05$

$Amount = 4410$

$\bf { Amount = Rs. \: 4410 }$

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We know that,

Compound Interest = Amount - Principal

Compound Interest = 4410 - 4000

Compound Interest = 410

$\bf { Compound \: Interest = Rs. \: 410 }$