Question

find the compound interest on rs .25600 for 2 years at 6.25% per
annum​

Answer 1

Given:

• Principal = Rs. 25600
• Rate = 6.25%
• Time = 2 years

To Find:

The compund interest

Solution:

Using the formula,

⇒ $\sf{CI = P \left(1 + \dfrac{R}{100}\right)^T}$

Substitute the values,

⇒ $\sf{CI = Rs.\:25600 \left(1 + \dfrac{6.25}{100}\right)^2}$

Solve the brackets,

⇒ $\sf{CI = Rs.\:25600 (1.0625)^2}$

Multiply 1.0625 by 1.0625,

⇒ $\sf{CI = 25600 \times 1.12890625}$

Multiply the numbers,

⇒ $\sf{CI= Rs.\:28900}$

∴ So, the compound interest is Rs. 28900.

Answer 2

SOLUTION :

➻ Given :-

• Principal, P = Rs. 25600

• Rate of interest, r = 6.25% p.a.

• No. of years, n = 2 years

➻ To Find :-

• Compound Interest, C.I. = ?

➻ Required Formula :-

$\: \: \: \: \: \: \: \: \boxed{\sf{ \large{ \bigstar {\: \: A = P(1 + \dfrac{r}{100} ) { }^{n} }}}} \\ \\ \boxed{\sf{ \large{ \bigstar { \: \: C.I. = A - P \: }}}}$

➻ Calculation of Amount, A :-

$\bold{ \bigstar \: \: A = P \: (1 + \dfrac{r}{100} ) { }^{n}} \: \: \: \: \\ \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \bold{= 25600 \: (1 + \dfrac{6.25}{100} ) {}^{2}} \\ \\ \: \: \: \: \: \: \: \: \: \bold{= 25600 \: (1 + \dfrac{1}{16} ) {}^{2}} \\ \\ \: \: \: \: \: \: \: \: \bold{ = 25600 \: ( \dfrac{16 + 1}{16} ) {}^{2}} \\ \\ \: \: \: \: \: \bold{= 25600 \times (\dfrac{17}{16} ) {}^{2} } \\ \\ \: \: \: \: \: \: \: \: \: = \bold{{}^{100} \: \cancel{25600}\times \dfrac{289}{ \cancel{256}}} \\ \\ \bold{=100 \times 289} \\ \\ \bold{= 28900 } \: \: \: \: \: \:$

• Hence, the Amount, A = Rs. 28900.

➻ Calculation of Compound Interest, C.I. :-

$\bold{ \bigstar \: \: C.I. = A - P} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \bold{= Rs. \: (28900 - 25600)} \\ \\ \: \: \bold{= Rs. \: 3300}$

• Hence, the Compound Interest, C.I. = Rs. 3300.

$\: \: \: \: \: \: \: \sf{: \mapsto : \: \: The \: \: compound \: \: interest \: \: on \: \: Rs. \: 25600 \: \: for \: \: 2 \: \: years \: } \\ \sf{at \: \: 6.25 \% \: \: per \: \: annum \: \: is \: \: \underline{ \: Rs.\: 3300 \: }.} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \:$

MORE TO KNOW :

❖ Interest :-

• When a person borrows a sum of money from another person or bank or any other financial institutions for a period, on the expiry of that period, the person (borrower) has to repay his debg by paying some extra money along with the original sum of money. The extra sum of money is known as Interest.

❖ Types of Interest :-

• [1] Simple Interest

• [2] Compound Interest

❖ Simple Interest :-

• When the interest is calculated on the initial sum of money borrowed throughout the specified period, then the interest obtained is known as Simple Interest.

❖ Compound Interest :-

• When the interest that falls due at the end of a specified time period is added to the principal and the amount so obtained becomes the principal for calculating interest for the subsequent period and the process goes on, thus the interests obtained is knowns as Compound Interest.