What is the compound interest accrued on a sum of rs 1800 at the rate of 4 p.c.p.a. in 2 years?
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Given
Principal amount (inclusive of Interest) =P=1800
Duration/Time = n = 2 years
Rate of Interest Per annum= i = 4%
Required to find is A = compound Interest
we know That..
For compound Interest...
A=P(1+i)^n-P
substituting above information..
A = 1800(1+4/100)^2 -1800
A= 1800(1+0.04)^2 - 1800
A= 1800(1.04)^2 - 1800
A = 1800(1.0816) - 1800
A= 1,946.88-1800
A= 146.88
so the compound Interest= 146.88
Principal amount (inclusive of Interest) =P=1800
Duration/Time = n = 2 years
Rate of Interest Per annum= i = 4%
Required to find is A = compound Interest
we know That..
For compound Interest...
A=P(1+i)^n-P
substituting above information..
A = 1800(1+4/100)^2 -1800
A= 1800(1+0.04)^2 - 1800
A= 1800(1.04)^2 - 1800
A = 1800(1.0816) - 1800
A= 1,946.88-1800
A= 146.88
so the compound Interest= 146.88
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