1. Rahul invested7,000 in shares for 2 years at the rate of 12% per an

1.	1. Rahul invested7,000 in shares for 2 years at the rate of 12% per annum compounded annuallyWhat is the compound interest that Rahul gets after 2 years?
Answer» For compound interest A = P(1 + R/100)^n Given P = 7000, n = 2, R = 12%, A =? A = 7000(1 + 12/100)^2 = 7000(1 + 3/25)^2 = 7000(28/25)^2 = 7000(1.12*1.12) = 7000(1.25) = 8750 Compound Interest Rahul gets after 2 years= A - P= 8750 - 7000= Rs 1750

1. Rahul invested7,000 in shares for 2 years at the rate of 12% per annum compounded annuallyWhat is the compound interest that Rahul gets after 2 years?

Answer»

For compound interest

A = P(1 + R/100)^n

Given P = 7000, n = 2, R = 12%, A =?

A = 7000(1 + 12/100)^2 = 7000(1 + 3/25)^2 = 7000(28/25)^2 = 7000(1.12*1.12) = 7000(1.25) = 8750

Compound Interest Rahul gets after 2 years= A - P= 8750 - 7000= Rs 1750