Question

Find the compound Interest for Rs.18,800 ,calculated for 2 years at 13% rate of Interest compounded annually

Answer 1

For compound interest, the formula is given below:

Amount =
`P(1+(r)/(100) )^(n)`

Here, P = 18,800

n = 2

r = 13/100

So, Amount =
`18,800(1+(13)/(100) )^(2)`

`18,800(1.13)^(2)`

= 18,800 × 1.2769

= 24005.72

Compound Interest = Amount - Principal

Compound Interest = 24005.72 - 18800

= 5205.72

Hence, the compound interest for Rs.18,800, calculated for 2 years at 13% rate of interest compounded annually is Rs.5205.72.