Question

If principal = 1,40,000 time=2years rate of interest = 14%p.a. compounded annually . Then find compound interest.

Answer 1

Dear student,

Following is the answer,

P = Rs 1,40,000
R = 14%
n = 2 years
$$\begin{gathered} A=P{\left[1+\frac{R}{100}\right]}^n \\ \Rightarrow A=140000{\left[1+\frac{14}{100}\right]}^2 \\ \Rightarrow A=181944 \\ C.I=A-P=181944-140000=41944 \end{gathered}$$
Hence, the compound interest = Rs 41944