Question

Nitin invested ₹7,000 in shares for 2years at the rate of 12% per annum compounded annually. What is the compoundinterest that nitin gets after 2 years?

Answer 1

$<b><u><i>$ Principal = P = 7000 rupee

Rate = 12%

Time = 2 years

Amount = ?

Compound Interest = ?

$= > a = p \: {(1 + \frac{r}{100}) }^{t} \\ \\ = > a = 7000 \: {(1 + \frac{12}{100}) }^{2} \\ \\ = > a = 7000 \: {( \frac{100 + 12}{100} )}^{2} \\ \\ = > a = 7000 \: { (\frac{112}{100}) }^{2} \\ \\ = > a = 7000 \times \frac{112}{100} \times \frac{112}{100} \\ \\ = > a = \frac{7 \times 112 \times 112}{10} \\ \\ = > a = 8780.8$

Amount => 8780.8

Compound interest = Amount - Principal

Compound interest = 8780.8 - 7000

Compound interest = 1780.8

Thanks!