Question

Find the compound interest on 6000 at 20% rate for 2 years

Answer 1

principlal for the first year= Rs6000

interest for the first year= (6000×20×1/100)= Rs1200

amount at the end of first year=Rs(6000+1200)=Rs7200

principal for the second year=Rs7200

interest for the second year=(7200×20×1/100)=Rs1440

amount at the end of second year=Rs(7200+1440)=Rs8640

compound interest= amount-principal

8640-6000

Rs2640