Question

what will be the compound interest on rupees 4000 at 5% annum in 2 years

Answer 1

the principal money is 4000 Rs
the percent per annum is 5%
the time is 2years

so here the compound interest for the first year =
(4000×5×1) / 100 = 200rs

now the principal money is (4000+200)=4200rs
the compound interest will be---------
=(4200×5×1) / 100 Rs
= 210 Rs (Answer)

Answer 2

atreyeee had answered correctly so no need to improve