Question

A savings account is compounded monthly at $10\%$ with a principal of Rs. $1350$. After $2$ years how much money will be there in a account and calculate its interest?

Answer 1

Given, $P=$ Rs. $1350$, $r=10\%$, $n=12$, $t=2$ years
$A=$ $P{(1+\frac{r}{n})}^{nt}$
$A=$ $1350(1+0.008333{)}^{12\times 2}$
$A=1350\times 1.220381$
$A=$ Rs. $1647.51$
Amount $=$ Principal $+$ Interest
Interest $=A-P$
$=1647.51-1350$
$=$ Rs. $297.51$