Question

Find the amount and the compound interest on $Rs5000$ for $2$ years at $6\%$ per annum interest payable yearly

Answer 1

given that (p)principal=5000 Rs

(r)interest rate =6%

(n) time in years = 2 years

compound interest=P${[1+\frac{r}{100}]}^n$

= 500${[1+\frac{6}{100}]}^2$

= 5000$\times {\left(\frac{106}{100}\right)}^2$

= $\frac{5000\times (106{)}^2}{100\times 100}$

= $0.5\times (106{)}^2$

= 5618 Rs

compound interest = 5618 Rs