Question

Find the amount and the compound interest.

Number	Principe $\left(Rs\right)$	Rate $(P.c.p.a)$	Duration (years)
$1$	$2000$	$5$	$2$
$2$	$5000$	$8$	$3$
$3$	$4000$	$7.5$	$2$

Answer 1

We know AMOUNT = $P(1+\frac{R}{100}{)}^T$

and compound interest is = AMOUNT - principal.

(i) $P=2000,R=5,T=2$

AMOUNT $=200(1+\frac{5}{100}{)}^2=2000\times 1.10=2205$

compound interest $=2205-2000=205.$

(ii) $P=5000R=8T=3$

AMOUNT $=5000(1+\frac{8}{100}{)}^3=5000\times 1.25=6250$

compound interest $=6250-5000=1250$

(ii)$P=4000R=7.5,T=2$

AMOUNT $=4000(1+\frac{7.5}{100}{)}^2=1.15\times 4000=4600$

Compound interest $=4600-4000=600$