Question

What will be the compound interest on 4000 at 5% per annum in 2 years

Answer 1

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Answer 2

Given :

Principal = Rs.4000

Rate of interest = 5% = 0.05

Time = 2 years

To Find :

What will be the compound interest ?

Solution:

Principal = Rs.4000

Rate of interest = 5%

Time = 2 years

Formula :

$Amount = P(1+r)^t$

$Amount = 4000(1+0.05)^2$

Amount =4410

Compound interest = Amount - Principal = 4410-4000=410

Hence The compound interest on 4000 at 5% per annum in 2 years  is Rs.410