Question

Find the compound interest
on Rs 4000 for 30 months at 10% per annum​

Answer 1

Rs. 1076.23

Explanation:

The compound interest is given by the formula;

A=P(1+r/n )^nt

where

A= amount at the elapse of the period

P= principal amount = Rs=4000

r=rate of interest=10% =0.1

n=number of times the interest is applied per time period= 1

t=number of time periods elapsed = 30 months = 30/12 = 2.5 years

Applying the formula;

A=P(1+r/n )^nt

A=4000( 1+ 0.1/1)^1*2.5

A=4000(1.1)^2.5

A=4000 * 1.2691

A=Rs. 5076.24

Compound interest will be : 5076.24-4000 = Rs. 1076.23