Question

find the compound interest p=rs4000 r=5percentage P.a n= 2 years interest compounded anually​

Answer 1

Given : ↴

Principal : Rs. 4000

Rate : 5%

Time : 2 Years

To Find : ↴

We have to Find the Compound Interest.

So let's start : ↴

Amount Formula : ↴

$\boxed {\mathrm {A \: = \: P \: \bigg( 1 + \dfrac{R}{100}\bigg)^{2} }}$

$\sf \: A = 4000 \: \bigg( 1 + \dfrac{5}{100} \bigg)^{2}$

$\sf \: A = 4000 \: \bigg(1 + \dfrac{1}{20}\bigg)^{2}$

$\sf \: A = 4000 \: \bigg( \dfrac{20 + 1}{20} \bigg)^{2}$

$\sf \: A = 4000 \: \bigg( \dfrac{21}{20} \bigg)^{2}$

$\sf \: A = 4000 \: \bigg( \dfrac{21}{20} \times \dfrac{21}{20} \bigg)$

$\sf \: A = 4000 \: \times \dfrac{21}{20} \times \dfrac{21}{20}$

$\sf \: A = 4000 \: \times \dfrac{21}{20} \times \dfrac{21}{20} \: = 4410$

Hence the Amount is 4410.

Now, We will Find the Compound Interest

Formula to find the Compound Interest ↴

$\boxed {\mathrm { C.I \: = \: Amount \: - \: Principal }}$

Here the Amount is = Rs. 4410

and the Principal is Rs. 4000

$\boxed {\mathrm { C.I \: = \: 4410 \: - \: 4000 \: = \: Rs. \: 410 }}$

So, Hence Compound Interest = Rs. 410