Question

P = Rs 2500, R = 8 p.c.p.a, N = 2 years. Find the compound interest and amount.

Answer 1

Principal = Rs 2,500
Rate of interest = 8% p.a.
Number of years = 2
Amount$=\mathrm{P}{\left(1+\frac{\mathrm{R}}{100}\right)}^{\mathrm{N}}=2500{\left(1+\frac{8}{100}\right)}^2=\mathrm{Rs}.2,916$
The amount is Rs 2,916.
Compound Interest = Amount − Principal
= Rs ( 2,916 − 2,500)
= Rs 416
∴ Amount = Rs. 2,916
Compound Interest = Rs. 416