Question

Find the compound interest and the total amount after four years if the interest is compounded annually. principal = ₹6250=₹6250equals, ₹, 6250 rate of interest = 20 \%=20%equals, 20, percent per annum total amount ==equals ₹ compound interest ==equals ₹

Answer 1

The compound interest is ₹3,354 and the total amount after four years is ₹9,604.

Step-by-step explanation:

To find the compound interest and the total amount after four years with an annual compound interest rate of 20%, we can use the formula:

Total Amount = Principal × (1 + Interest Rate)^Time

Given that the Principal is ₹6250 and the Time is 4 years, we can plug in these values to calculate the Total Amount. The compound interest can be calculated by subtracting the Principal from the Total Amount.

Using the formula, we have:

Total Amount = ₹6250 × (1 + 0.20)^4 = ₹9,604

Compound Interest = Total Amount - Principal = ₹9,604 - ₹6250 = ₹3,354