Question

Madhu deposited Rs. $20000$ in a bank at $10\%$ per annum. Find the compound interest after $1\frac{1}{2}$ years if the interest is compounded yearly.

Answer 1

Madhu diposited Rs $20000$ in a bank.

$\text{Rate}=10\%$ per annum compounded annually.

$\text{Time}=\frac{3}{2}$ years.

We know that, total amount when compounded yearly is given by

$\text{Total amount}=P{(1+\frac{R}{100})}^n$

$=20000{(1+\frac{10}{100})}^{\frac{3}{2}}=22000$

$\text{Interest}=\text{Amount}-\text{Principle}=22000-20000=2000$