Question

what will be the interest after two years on sum of rs 1440 at rate of interest 25/2 compounded annually

Answer 1

The interest is Rs.382.5

Step-by-step explanation:

Principal = Rs.1440

Rate of interest = $\frac{25}{2} \% = \frac{25}{200}$

Time = 2 years

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

Amount = $1440(1+\frac{25}{200})^2$

Amount =1822.5

Compound interest = Amount - Principal

Interest = 1822.5-1440

Interest = 382.5

Hence The interest is Rs.382.5

#Learn more:

Compound interest earned on a sum for the second and the third years are Rs.1200 and Rs.1440 respectively. Find the rate of interest ?

A) 20% p.a

B) 15% p.a

C) 18% p.a

D) 24% p.a

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