the compounds interest on rupees 4000 at 10% annum for 2 years 3 months compound annually, will be :
Answers
Answer:
We will first calculate the compound interest on ₹ 4000 for 2 years at 10% per annum.
P = ₹4000 , R = 10%, n= 2 years
Amount = Principal (1 + R/100)ⁿ
A = 4000 ( 1+10/100)²
A = 4000 × (110/100)²
A = 4000 × 110/100 × 110/100
A = 40 × 11 × 11
Amount = ₹4840
Thus the amount at the end of 2 years is ₹4840.This will be the principal for the remaining 3 months (3/12) which is 1/4 years.
P = ₹4840 for T = 1/4 year at R = 10% p.a
Simple interest I =( P×R×T) / 100
I = (4840 × 10 × 1/4) / 100
Interest = ₹121
Thus the amount at the end of 2 1/4 years = ₹(4840 + 121) = ₹4961
Thus the compound interest = Amount - CI
CI = ₹(4961 - 4000)
CI = ₹961
Principal(P) = Rs 4000
Rate of Interest(r ) = 10%
Time = 2 years and 3 months
Here first we take n = 2 years.
A = P( 1 + r /100)n Where A = Amount and n = number of years
A = 4000 (11/10)2
A = 4000 ( 121 / 100 )
A = Rs 4840
The Amount after two years = Rs 4840
Now Principal = Rs 4840
Simple interest for last 3 month i.e 1/4 year is = PRT/100 = (4840 × 10 × 1 / 4) / 100 = Rs.121
Amount after 2 years and 3 months = Rs 4840 +
Rs 121 = Rs 4961
C.I = A - P
C.I = 4961 - 4000 = Rs. 961