rahul invested ₹7000 in shares for 2 years at the rate of 12% per annum compounded annually. what is the compound interest that rahul gets after 2 years?
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Answer:
Step-by-step explanation:
Compound interest = 1780.8 Rupees
Step-by-step explanation:
The amount invested by Rahul (P) = Rs 7000
He invested for 2 years.
So, Time (n) = 2 years
Rate is given as 12% per annum.
so, r = 12%
Since, we know the formula to find out the compound interest as;
Now, we put the value in above formula, we get.
A = Rs 8780.8
After 2 years, Rahul will get this total amount. But, he invested Rs 7000.
Therefore, to find out the compound interest, we subtract the amount invested.
Hence, the compound interest = 8780.8 - 7000 = 1780.8 Rupees
Thus, after 2 years, the compound interest is 1780.80.
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