What is the compound interest on Rs. 2500 for 2 years at rate 4% per annum ?
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Answered by
32
Answer:
2500 for 2 years at 4 per cent per annum , compound intrest being reckoned semi-annually.
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Answered by
27
Given,
The principal amount is Rs. 2500
The time is 2 years
The rate of the interest is 4% per annum.
To find,
The compound interest on the given amounts.
Solution,
Here, the compound interest is compounded annually, so we can use the following mathematical formula, to calculate the total amount with interest.
A = P [ 1 + r/100]^n
A = Total Amount = Principal amount + Interest
P = Principal amount
r = rate
n = Number of years
So,
total amount = 2500 × (1 + 4/100)²
= 2500 × ( 1 + 1/25)²
= 2500 × (26/25)²
= 2500 × (676/625)
= 2704
Interest = Total amount - Principal amount = 2704-2500 = Rs. 204
Hence,the compound interest is Rs. 204
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