Question

find the compound interest on rs 7000 for 2 year at 10%of p.a
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Answer 1

Step-by-step explanation:

Here A = P(1+i)^2 x (1+5/12 i) [ where A = Amount compounded, P = principal = $7000, i = 10/100.

So, A = 7000 (1+10/100)^2 x (1+ 5/12* 10/100)

Or, A = 7000 x 121/100 x 25/24

Or, A = 8822.917 = 8823 ( approx )

Now Compound Interest = A - P

= 8823 - 7000 = 1823

Answer 2

Given :-

• Principal = P = Rs.7000
• Time = T = 2 years.
• Rate = R = 10% per annum compounded Annually .

To Find :-

• Compound interest = CI = ?

Formula used :-

• Amount = A = P[ 1 + (R/100)]^T
• CI = A - P

Solution :-

Putting all values in amount formula we get,

→ A = 7000[ 1 + (10/100)]²

→ A = 7000[1 + (1/10)]²

→ A = 7000(11/10)²

→ A = (7000 * 121)/100

→ A = 70 * 121

→ A = Rs.8470

Therefore,

→ CI = A - P

→ CI = 8470 - 7000

→ CI = Rs.1470 (Ans.)

Hence, Compound interest recevied is Rs.1470.