Question

how much compound interest is earned by investing rupees 20,000 for 6years at 5% per annum compounded annualy

Answer 1

p=20000
n=6 yrs
r=5 
A= p (1+r/100)n
= 20000 (1+5/100)6
=20000 (105/100)6
=20000×1.3400956
=26801.91

CI= A-P
=26801.91 - 20000
=6801.91

Answer 2

Heya ☺

Given that

P = ₹20,000

R = 5 % p.a.

T = 6 years

Solution

When the interest is compounded annually

C.I. = {P(1+R/100)^n - 1}

= {20,000(1+5/100)^6 - 1}

= {20,000(100+5/100)^6 - 1}

= {20,000(105/100)^6 - 1}

= {20,000(21/20)^6 - 1}

= {20,000 × (8,57,66,121/6,40,00,000) - 1}

= {20,000 × (8,57,66,121 - 6,40,00,000/6,40,00,000}

= {20,000 × 2,17,66,121/6,40,00,000}

= ₹6,801.91



Thanks