Question

find the compound interest on a sum of rupees 400 at the rate of 10% for the period of the 2.5 year​

Answer 1

Answer:

Compound interest for 2.5 years is Rs. 1082.

Step-by-step explanation:

Since we have given that

Principal = Rs. 4000

Rate of interest = 10% p.a.

Time = 2.5 years

First we calculate the amount for 2 years using the Compound interest formula:

\begin{gathered}A=P(1+\dfrac{r}{100})^n\\\\A=4000(1+\dfrac{10}{100})^2\\\\A=4000(1+0.1)^2\\\\A=4000\times (1.1)^2\\\\A=4840\end{gathered}

A=P(1+

100

r

)

n

A=4000(1+

100

10

)

2

A=4000(1+0.1)

2

A=4000×(1.1)

2

A=4840

Now, Rs. 4840 becomes the principal at the end of 2nd year.

So, we will calculate the interest on Rs. 4840 for 0.5 year @ 10%.

So, it becomes,

\begin{gathered}I=\dfrac{4840\times 0.5\times 10}{100}\\\\I=Rs.\ 242\end{gathered}

I=

100

4840×0.5×10

I=Rs. 242

So, interest on RS. 4000 @10% for the first year = Rs. 400

Interest on Rs. 4000+400=Rs. 4400 for the second year = Rs. 440

Interest on Rs. 4840 for the 0.5 more year = Rs. 242

So,Total compound interest = 400+440+242 = Rs. 1082

Hence, compound interest for 2.5 years is Rs. 1082.