Question

Rehana received a sum of Rs. 40,000 as a loan from a finance company at the rate of 7% p.a. find the compound interest paid by Rehana after 2 years.​

Answer 1

The compound interest paid by Rehana after 2 years is Rs. 5796.

Step-by-step explanation:

Required Formula:

• Amount, A = P [1 + R/100]ⁿ

• Compound Interest, C.I. = A – P

The sum received by Rehana as a loan, P = Rs. 40,000

The rate of interest, R = 7% p.a.

Time period, n = 2 years

Now, substituting the given values in the first formula, we get

A = 40000 * [1 + $\frac{7}{100}$]²

⇒ A = 40000 * [$\frac{107}{100}$]²

⇒ A = [$\frac{40000 * 107 * 107}{100 * 100}$]

⇒ A = 4 * 107 * 107

⇒ A = Rs. 45796

Again by substituting the value of A and P in the second formula, we get

C.I. = Rs. 45796 – Rs. 40000 = Rs. 5796

Thus, the compound interest paid by Rehana after 2 years is Rs. 5796.

---------------------------------------------------------------------------------------------

Also View:

Find the compound interest for 21 by 2 years and 4000 at 10% per annum if the interest compounded yearly.

https://brainly.in/question/13252278

Find the compound interest on R.s. 3200 at 2.5p.a for 2 years,compounded annually.

https://brainly.in/question/13303892

Answer 2

The compound interest paid by Rehana after 2 years is Rs. 5796.

Step-by-step explanation:

Required Formula:

Amount, A = P [1 + R/100]ⁿ

Compound Interest, C.I. = A – P

The sum received by Rehana as a loan, P = Rs. 40,000

The rate of interest, R = 7% p.a.

Time period, n = 2 years

Now, substituting the given values in the first formula, we get

A = 40000 * [1 + \frac{7}{100}

100

7

]²

⇒ A = 40000 * [\frac{107}{100}

100

107

²

⇒ A = [\frac{40000 * 107 * 107}{100 * 100}

100∗100

40000∗107∗107

⇒ A = 4 * 107 * 107

⇒ A = Rs. 45796

Again by substituting the value of A and P in the second formula, we get

C.I. = Rs. 45796 – Rs. 40000 = Rs. 5796

Thus, the compound interest paid by Rehana after 2 years is Rs. 5796.