Question

P = rs. 4000, r=5% n= 2 years interest annually​

Answer 1

Given:-

• Principal = 4000 rupees
• Rate = 5%
• Time = 2 years

To Find :-

• Compound Interest = ?

Solution:-

As we know that,

$\sf \: compound \: interest = principal {(1 + r)}^{t} - principal \\ \\ \sf \: = 4000 {(1 + 5)}^{2} - 4000 \\ \\ \sf \: = 4000 {(6)}^{2} - 4000 \\ \\ \sf \: = 4000 \times 36 - 4000 \\ \\ \sf \: = 144000 - 4000 \\ \\ \sf \: = 140000 \: rupees$

Hence,

• Compound interest is 140000 rupees.