Question

Find the compound interest (reckoned yearly) on Rs. 2400 at 10% p.a. for 2 years 4 months

Answer 1

2400ka10 %=24 ka2year=17520 4yearka=35040

Answer 2

Answer:

Step-by-step explanation:

Definition of compound interest:

Compound interest is interest that builds up over a set length of time on both principal and interest. The principal is also used to account for the interest that has accrued on a principal over time.

Furthermore, the accumulated principal value is used to calculate interest for the subsequent time period. The new way of calculating interest now utilized in all international financial and commercial operations is known as compound interest. When we look at the compound interest values that have built over successive time periods, the power of compounding is clearly apparent.

Formula of compound interest:

$A=P(1 + r/100)^ n$

FINAL AMOUNT = A

P is the Principal

r is the interest rate

n is the number of times interest is applied in a given time period.

t = total number of passing time intervals

GIVEN:

Principal =2400

rate =10%

n = 2 years 4 months

FIND:

Compound interest

Solution:

1 year = 12 months

n = (2years)*(4/12)years

n=(2/3)years

$A=P(1 + r/100)^ n$

A = 2400(1 + (10/100))

A=2400(11/10)

A = 2640

Compound interest = Amount - principal

                                =2640-2400

                                = 240

Hence compound interest = 240.

#SPJ3