Question

what is compound interest on principal amount 4000 at 5 year on 12%interest?

Answer 1

solution:

Given: principal amount Rs.4000 at 5 year on 12%interest,

To find: compound interest for the money

C=$P(1+ \frac{r}{100} )^n$
C=$4000( 1+\frac{12}{100} )^5$
C=$4000( \frac{112}{100})^5$
C=$4000( \frac{112}{100})( \frac{112}{100} )( \frac{112}{100} )( \frac{112}{100})( \frac{112}{100} )$
C=$4000( \frac{17623416832}{10000000000})$
C=$4000(1.7623416832)$
C=Rs.7050