Question

Find the compound interest correct to the nearest rupee on rupee 2400 for 2.5 years at 5 percent per annum

Answer 1

Principal(P) = Rs 2400

Rate of Interest(r ) = 5%

Time = 2.5 years

Here first we take n = 2 years.

A = P( 1 + r /100)ⁿ Where A = Amount and n = number of years

A = 2400 (105/100)²

A = 2400 ( 105 / 100 )^2

A = Rs 2646

The Amount after two years = Rs 2646

Now Principal = Rs 2646

Simple interest for last ½ year is = PRT/100 = (2646 × 5 × 1 / 2) / 100 = Rs.66.15

Amount after 2 ½ year = Rs 2646 + Rs 66.15 = Rs 2712.15

C.I = A - P

C.I = Rs 2712.15 - Rs 2400 = Rs312.15

∴ The compound interest is Rs 312.15.

like if satisfied