Question

Find the compound interest on 4000 for 2*1/2 years at 10% p.a.
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Answer 1

Answer:

Principal(P)  = Rs 4000

Rate of Interest(r )  = 10%

Time = 2.5 years

Here first we take n = 2 years.

A = P( 1 + r /100)n  Where  A = Amount  and n = number of years

A=4000(11/10)2

A = 4000 ( 121 / 100 )

A = Rs 4840

The Amount after two years = Rs 4840

Now Principal = Rs 4840

Simple interest for last ½ year is = PRT/100  =  (4840 × 10 × 1 / 2) / 100 = Rs.242

Amount after 2 ½ year =  Rs 4840 +  Rs 242 = Rs 5082

C.I = A - P

C.I = Rs 5082 - Rs 4000 = Rs1082

∴ The compound interest is Rs 1082.

Answer 2

Here first we take n = 2 years. ∴ The compound interest is Rs 1082.