Question

Q5: Find the amount and compound interest and amount on 3240 for 2 years at 4% per
annum.

Answer 1

Answer:

Principal (p) = Rs 3000

Rate (r) = 5%

Time = 2years

Interest for the first year = (3000×5×1)/100 = 150

Amount at the end of first year = Rs 3000 + 300 = Rs 3150

Principal interest for the second year = (3150×5×1)/100 = 157.5

Amount at the end of second year = Rs 3150 + 157.5 = Rs 3307.5

∴ Compound Interest = Rs 3307.5 – Rs 3000 = Rs 307.5

Answer 2

principal = Rs. 3240

time = 2 years

rate = 4%

amount = P(1+r/100)*t

= 3240(1+4/100)*2

= 3240(100+4/100)*2

= 3240(104/100) x 104/100

= 3240 x 104 x 104 / 10000

= 36990720/10000

= Rs. 3699.0720

Compound interest = amount - principal

= 3699.0720-3240

= Rs. 459.0720