1.

What will be the compound interest on 4,000 in two years when rate of interestis 5% per annum?​

Answer»

<P>✰ Question :- What will be the compound interest on 4,000 in two YEARS when rate of interest is 5% per annum?

✫ Formula used :-

  • Amount = Principal * [ 1 + (Rate/100) ]^Time
  • Compound interest = Amount - Principal.

✰ Solution :-

putting all values in above formula we get,

⟼ A = 4000 * [ 1 + (5/100) ]²

⟼ A = 4000 * [ 1 + 1/20 ] ²

⟼ A = 4000 * (21/20)²

⟼ A = 4000 * 21/20 * 21/20

⟼ A = 4410

So,

⟿ CI = A - P

⟿ CI = 4410 - 4000

⟿ CI = RS. 410

Hence, we get, Rs.410 as compound interest.



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