Question

How much will a sum of `6,300 amount to in a span of 2 years, at 5 pcpa rate of compound interest?

Answer 1

Given Principal Amount= P=6300

Rates of interest Per annum= i =5% p.a

Time= n = 2 years

Compounded amount= ?

We know that

Compounded amount = P(1+i)^n

=6300[ (1+5/100)^2

=6300[(1 + 0.05)^2

=6300[ (1.05)^2

=6300 (1.1025)

= 6,945.75 is compounded amount