Question

Find the compound interest of Rs2400 for 2 years at the rate of 5% p.a. Compounded annually. ​

Answer 1

Answer:

504 rupees

Step-by-step explanation:

I= 2400×2×5/100  =   240 rupees

A= 2400 + 240= 2640 rupees

new I= 2640×2×5/100  =  264 rupees

A= 2640 + 264= 2904 rupees

CI= 2904 - 2400 = 504 rupees

Answer 2

Answer:

Rs 246

Step-by-step explanation:

Year 1:-

Principal for year 1 = Rs2400

Time = 1 year

rate = 5%p.a.

Interest for year 1 = $(Principal*Rate*Time)\frac{1}{100}$

                             = (2400*5*1)/100

                             =Rs 120

Year 2:-

Principal for year 2 = (Interest for year 1 + Principal for year 1)

                                = Rs 120 + Rs 2400

                                = Rs 2520

Time = 1 year

Rate = 5%p.a.

Interest for year 2 = (2520*5*1)/100 [use same equation as used for year 1]

                              = 12600/100

                              = Rs 126

Total Compound Interest = Interest for year 1 + Interest for year 2

=> Total compound interest = Rs 120 + Rs 126

                                              = Rs 246 ANS