Question

What will be the amount if ` 2,000 is invested for 2 years at 4% p.a. compounded annually? *

Answer 1

step - by - step explained :

Principal = ₹2, 000

Rate = 4%=r

Time=2yrs = n

Amount= P (1+r/100 ) n

=₹2,000 x (1+4/100) 2

=₹2, 000 x (104/100) 2

=₹2, 000 x (26/25 x 26/25 )

=₹2, 000 x (676/625)

= ₹16x676/5

=₹ 10,816/5

=₹ 2163.2

So, Compound Interest= ₹(2163.2-2000)

=₹163.2

Answer : compound Interest=₹ 163.2

like my answer