Question

what is the C.I on Rs.2000 for years at 4percent p.a

Answer 1

Principal= Rs.2000 (p)
Time=  2 years (t)
Rate= 4% p.a. (r)

Amount= P(1+r/100)raised to power (t)

             = 2000(1+4/100) raised to power 2

             = 2000 (1+1/25) raised to power 2

             = 2000 (26/25) raised to power 2

             = 2000* 26/25 * 26/25

             = 80* 26* 26/25

             = 80* 676/25  =   2163.2 Rs.

Hence, CI = Amount + Principal

             CI = 2163.2 + 2000 = 4163.2

Therefore, the CI is Rs.4163.2