Question

The compound interest on Rs. 50000 at 4% per annum for 2 years compound annually is

Answer 1

$54080

Explanation:

Step one:

given

principal= Rs. 50000

rate= 4%= 0.04

time= 2 years

Required

The final Amount A

Step two

Applying

A= P(1+r)^t

substitute

A= 50000(1+0.04)^t

A= 50000(1.04)^2

A= 50000*1.0816

A= 54080

$54080