Question

Calculate the compound interest for $Rs4800$ for $2$ years at $5\%$ per annum compounded annually.

Answer 1

Given:-

$P=Rs.4800$

$n=2\text{years}$

$R=5$

As we know that,

$A=P{(1+\frac{R}{100})}^n$

$\therefore A=4800{(1+\frac{5}{100})}^2$

$\Rightarrow A=4800{\left(\frac{21}{20}\right)}^2$

$\Rightarrow A=\frac{4800\times 21\times 21}{20\times 20}=5292$

Therefore,

Compound interest

$=A-P=5292-4800=Rs.492$