Question

What is the compound interest on Rs. 2500 for 2 years at rate 4% per annum ?​

Answer 1

Answer:

2500 for 2 years at 4 per cent per annum , compound intrest being reckoned semi-annually.

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Answer 2

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