Question

The compound interest on Rs.4000 at 10% per annum for 2 years 3 months, find compounded annually

Answer 1

Compound interest accumulation factor :

P(1 + i)ⁿ = Accumulated amount

P = principle amount

i = interest rate =10%

n = Time in years = 2.333

P = 4000

Doing the substitution :

4000 × ( 1.10)^2.3333

4000 × 1.2491 = 4996.4

Rs 4996.4

Answer 2

This is the solution!!