Question

What is the compound interest accrued on a sum of rs 1800 at the rate of 4 p.c.p.a. in 2 years?

Answer 1

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