Question

calculate the amount and compound interest on rupees 4000 at the rate of 8% per annum compounded annually for 2 years​

Answer 1

Explanation:

To calculate the compound interest we use the formula

C = A - P

Where

A is the amount

P is the principal

C is the compound interest

To find the amount we use the formula

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

where P is the principal

r is the rate

n is the period

From the question

P = 4000 rupees

rate = 8%

n = 2 years

Substitute the values into the above formula

That's

`A = 4000( 1 + (8)/(100) )^(2)`

`A = 4000 ({1 + 0.08})^(2)`

`A = 4000 ({1.08})^(2)`

A = 4665.6

The amount is 4665.60 rupees

Since the amount is found we can now find the compound interest

C = 4665.60 - 4000

C = 665.6

The compound interest is

665.60 rupees

Hope this helps you