Question

Find the compound interest on rupees 6400 for 2 years , compounded annually at 7.5% per annum ?

Answer 1

hlo here is the answer hope it helps

Answer 2

Given: Principal (P) = Rs. 6,400, Rate of Interest (R) = 7.5% and Time (n) = 2 years

To find: Compound Interest

Solution:

Using the formula for calculating Amount :

∵ $A = P (1 + \frac{R}{100})^{2}$

Amount after 2 years = ${6400(1 + \frac{7.5}{100}) ^{2}$

                                   = $6400 (\frac{1075}{1000}) ^{2} = 6400 (\frac{43}{40})(\frac{43}{40})$

                                   = $Rs. \ 7,396$

∵ $Compound \ Interest = Principal - Amount$

⇒ $7,396 - 6400 = 996$

Hence, the compound interest on Rs. 6,400 for 2 years, compounded annually at 7.5% per annum is Rs. 996.