Question

Find the compound interest when principal=2000,rate=20% per annum and time = 2 years 3 month
The direct answer in my book is 1024 ...
NO F********* SPAMMING
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Answer 1

Answer:

ANSWER

P=2000,Rate=10%

andT=2years

Then

CompoundInterest=p(1+

100

R

)

=2000(1+

100

10

)

2

=2000(

10

11

)

2

=2000×

100

121

=2420

Compound Interest 2420 Rupees

Answer 2

Answer:

Rs. 1024

Step-by-step explanation:

Here, we divide the calculation into two parts, such that, for first 2 years of time and next 3 months of time. Because the interest is compounded yearly.

(1) For CI,

$A = P[1+(R/100)]^n$

P = 2000

R = 20%

n = 2

= 2000 [1+(20/100)]²

= 2880

We take this amount as Principle (P) for next calculation for 3 months (1 quarter)

(2)

P = 2880

R = 5%    ∵[20% is for 1 year. For 1 quarter, 20/4 = 5%. Because a year consists 4 quarters]

n = 1    ∵[here the time period is 1 quarter]

$A = P[1+(R/100)]^n$

= $2880 [1+(5/100)]^1$

A = 3024

This is the total Amount. From this we subtract the Principle, we can get the Interest rate.

CI = A-P

= 3024 - 2000

= 1024

Compound Interest = Rs. 1024