Question

Find the amount and the compound interest on 5000 for 2 years at 6% per annum, interest payable yearly.

Answer 1

It is given that
Principal (P) = 5000
Rate of interest (r) = 6% p.a.
Period (n) = 2 years
We Know that
Amount = $P(1+r/100{)}^n$
Substituting the values
=$5000(1+6/100{)}^2$
By further calculation
= $5000\times 53/50\times 53/50$
= 5618
Here
CI = A - P
Substituting the values
=$5618-5000$
= $618$