Answer:
i) To calculate the amount after 2 years compounded annually, we can use the formula:
A = P(1 + r/n)^(nt)
where A is the amount, P is the principal (initial deposit), r is the annual interest rate (as a decimal), n is the number of times the interest is compounded per year, and t is the number of years.
In this case, P = Rs. 50000, r = 0.04 (since the interest rate is given as 4%), n = 1 (since the interest is compounded annually), and t = 2. Plugging these values into the formula, we get:
A = 50000(1 + 0.04/1)^(1*2)
A = 50000(1.04)^2
A = Rs. 54,080
Therefore, the amount after 2 years is Rs. 54,080.
ii) To calculate the interest, we can subtract the principal from the amount:
Interest = Amount - Principal
Interest = Rs. 54,080 - Rs. 50000
Interest = Rs. 4,080
Therefore, the interest earned after 2 years is Rs. 4,080.
Explanation: