Question

what sum will become₹5408 after 2 years at 4 percent per annum when the interest is compound annually?
step by step explaination

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Answer 1

Answer:

The amout will be 5849.29

Step-by-step explanation:

Compound interest can be calculated using the formula A = P (1 + r/n)^(nt), entering into it the initial principal amount (P), annual interest rate (r as decimal), time factor (t) and the number of compound periods (n).

So the sum ₹5408 will become after 2 years at 4% per annum when the interest is compounded annually=5408(1+4/100)^2

=5408(26/25)^2

=5408 × 676/625

=5849.29