Question

Q.15. Rs 4000 is lent at 5 % compound interest per annum for 2 years. Find the amount and the compound interest.
( Ans: Rs. 4410; Rs. 410).

Answer 1

Dear Student,

$$\begin{gathered} Principleamount=4000 \\ rateofinterest=5\% \\ time=2years \\ Applycompoundinterestformula \\ Amount=P{\left(1+\frac{R}{100}\right)}^T \\ Amount=4000\times {\left(1+\frac{5}{100}\right)}^2 \\ =4000\times {\left(1+\frac{1}{20}\right)}^2 \\ =4000\times {\left(\frac{21}{20}\right)}^2 \\ =4000\times \frac{441}{400} \\ =441\times 10 \\ =4410 \\ Compoundinterest=Amount-Principle \\ =4410-4000 \\ =410 \end{gathered}$$

Regards,