Question

Find the compound interest on ₹4000 for 2.5 years at 10% per annum?

Answer 1

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.


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