Question

how much compound interest is earned by investing 20000 for 6 years at 5% per annum compounded annually

Answer 1

Hi ,

Principal ( P ) = Rs 20000

Time ( t ) = 6 years

Rate of interest ( r ) = 5%

Number of times interest paid (n) = 6

Amount = P( 1 + r/100 )^n

A = 20000( 1 + 5/100 )^6

A = 20000 ( 21/20 )^6

A = Rs 26801.91

Compound interest = A - P

C.I = 26801.91 - 20000

=Rs 6801.90

I hope this helps you.

: )

Answer 2

Principle = 20000

Time = 6 years

R.I =5%

A=P(1+R%)^n

A=20000(1+5/100)^6

A=20000*(21/20)^6

A=26801.9128125

C. I=A-P

C. I=26801.9128125 - 20000

C. I=60801.9128125