Question

What is the compound interest on the sum of 15625 for 2 years at the rate of 2% per annum if the interest is 8 months is composed?​

Answer 1

Thus the compound interest is 631 Rs.

Step-by-step explanation:

We are given that:

• Principal amount = 15625 Rs
• Time = 2 years
• Rate = 2 %

Solution:

A = 15625 x ( 1 + 2 / 100 )^2

A = 15265 x ( 1 + 0.02 )^2

A = 15625 x ( 1.02 )^2

A = 15625 x 1.0404

A = 16256 Rs

Compound interest =  16256 Rs - 15625 Rs = 631 Rs

Thus the compound interest is 631 Rs.

Answer 2

Answer :-

Thus the compound interest is 631 Rs.

Step-by-step explanation:

We are given that:

Principal amount = 15625 Rs

Time = 2 years

Rate = 2 %

Solution:

A = 15625 x ( 1 + 2 / 100 )^2

A = 15265 x ( 1 + 0.02 )^2

A = 15625 x ( 1.02 )^2

A = 15625 x 1.0404

A = 16256 Rs

Compound interest =  16256 Rs - 15625 Rs = 631 Rs

Thus the compound interest is 631 Rs.