Question

Q.Salma deposited rs 6250 with a company at9.5%per annum compound interest for 2 years. Calculate the amount and compound interest she will ge after 2 years. Use simple interest formula year by year

Answer 1

Step-by-step explanation:

Principal = 6250

Rate of interest = 9.5%

S.I at the end of the first year = (6250*9.5*1) / 100 = 2375/4

Amount at the end of the first year = 6250 + 2375/4 = 27375/4 = 6843.75

New principal = 6843.75

S.I at the end of the second year = (6843.75 * 9.5 * 1)/100 = 650.15625

Amount at the end of the second year = 6843.75 + 650.15625 = 7493.90625

So, amount she will get after 2 yrs is 7493.90625 and the compound interest recieved by her = 7493.90625 -  6250