Question

the simple interest on a certain sum of money for 2 years at 4 whole 1 by 2% per annum is Rs 5400 what will be the compound compound interest on that sum at the same rate for the same time period if the interest is compounded annually

Answer 1

Answer:

The amount is $7763.37 and the interest is $4263.37.

Step-by-step explanation:

STEP 1: To find amount we use formula:

A=P(1+rn)n⋅t

A = total amount  

P = principal or amount of money deposited,

r = annual interest rate  

n = number of times compounded per year

t = time in years

In this example we have

P=$3500 , r=10% , n=12 and t=8 years

After plugging the given information we have

AAAA=3500(1+0.112)12⋅8=3500⋅1.00833396=3500⋅2.218105=7763.37

STEP 2: To find interest we use formula A=P+I, since A=7763.37 and P = 3500 we have:

A7763.37II=P+I=3500+I=7763.37−3500=4263.37