Question

Find the compound interest on rs 20000at 15% for 2 1/3 years compounded annually

Answer 1

Answer:

Rs.7711.39

Step-by-step explanation:

P = initial amount = Rs.20,000

R = rate of interest per cent per year = 15

T = time period in years = 2$\frac{1}{3}$ = 2.3333

A = Amount at the end of T years

CI = Compound interest earned = A - P

A = P*(1 + R/100)^T

   = 20000*(1 + 15/100)^(2.3333)

   = 20,000*(1.15)^(2.3333)

   = 20,000*(1.3856)

CI = A - P

    = 20,000*(1.3856) - 20,000

    = 20,000*(1.3856 - 1)

    = 20,000*(0.3856)

    = 7711.39

Compound interest = Rs.7711.39