Question

what will be the compound interest on rupees 7600 at the rate of 5 percent per annum for 2 years​

Answer 1

Answer:

Hence, the Compound Interest = ₹ 779

Explanation:

• Given:-

P = ₹7600

R = 5%

T = 2 years

n = 1

• To find:-

Compound interest

• Solution:-

A = P (1 + R/n)^(nt) ,

where P is the initial principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods.

Then, we get,

A = P (1 + r/100)^t

A = 7600 (1 + 5/100)^2

A = 7600 (105/100)^2

A = 7600 (21/20)^2

A = 7600 × 21/20 × 21/20

A = 76 × 21/2 × 21/2

A = 38 × 21 × 21/2

A = 19 × 21 × 21

A = ₹8379

C.I = Amount - Principal = A - P

C.I = 8379 - 7600

C.I = ₹779

Hence, the Compound Interest = ₹ 779

'A piece of Supplementary Counsel' :-

• Compound Interest = Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one. Interest can be compounded on any given frequency schedule, from continuous to daily to annually.

• Principal = The total amount of money borrowed (or invested), not including any interest or dividends.

• Rate = This interest rate represents a ratio of the principal borrowed or invested.

• Time = The duration for which the money is borrowed/deposited.