Question

Harish deposited $Rs5120$ in a bank paying interest at the rate of $6\frac{1}{4}\%$ per annum. Find the compound interest due to him at the end of $2$ years.

Answer 1

As we know that,

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

Here,

$A=$ Amount

$P=$ Principle $=Rs.5120$

$R=$ Rate of interest $=\frac{25}{4}\%$

$n=$ No. of years $=2$

Therefore,

$A=5120{(1+\frac{\left(\frac{25}{4}\right)}{100})}^2$

$\Rightarrow A=5120{(1+\frac{1}{16})}^2$

$\Rightarrow A=5120\times \frac{17\times 17}{16\times 16}=20\times 289=Rs.5780$

Therefore,

$I=A-P=5780-5120=Rs.660$