Question

Find the compound interest on Rs.4000 for the 5th year when the rate of interest is 8% p.a​

Answer 1

Step-by-step explanation:

Hope this answer will be helpful..

Answer 2

Answer:

The compound interest on Rs.4000 for the 5th year is Rs. 345.60

Step-by-step explanation:

Given that principal = P = Rs. 4000

rate of interest = R = 8%

Let the time be denoted by n

CI for the 5th year = CI in 5 years - CI in 4 years.

We know that CI = P(1 + $\frac{R}{100}$)ⁿ - P

Therefore, substituting the values, we get,

CI for the 5th year = P(1 + $\frac{R}{100}$)ⁿ - P - [ P(1 + $\frac{R}{100}$)ⁿ - P ]

                              = P(1 + $\frac{R}{100}$)ⁿ - P - P(1 + $\frac{R}{100}$)ⁿ + P

                              = P(1 + $\frac{R}{100}$)ⁿ - P(1 + $\frac{R}{100}$)ⁿ

                              = 4000 * (1 + $\frac{8}{100}$)⁵ - 4000 * (1 + $\frac{8}{100}$)⁴

                              = 4000 * (1 + $\frac{8}{100}$)⁴ [(1 + $\frac{8}{100}$) - 1 ]

                              = 4000 * (1 + $\frac{8}{100}$)⁴ *$\frac{8}{100}$

                              = 345.60

Therefore, the compound interest on Rs.4000 for the 5th year is Rs. 345.60