What will be the compound interest on 4000 for 2 years at the rate of 5% per annum?
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What is the compound interest on Rs 4000 for 2 years at the rate of 10% per annum?4961∴ C.I. = A - P = Rs. 4961 - 4000=Rs. 961 (c)
What does 5% interest compounded annually mean?Compound interest is the interest you earn on interest. This can be illustrated by using basic math: if you have $100 and it earns 5% interest each year, you'll have $105 at the end of the first year. At the end of the second year, you'll have $110.25.
What is the amount on ₹ 4000 at 10% pa for 2 years?Complete step by step solution:
According to our question, P=4000,r=10%,n=2years. On Calculation A we get, A=P(1+r100)n⇒A=4000(1+10100)2⇒A=P(1+ Hence the amount after 2 years will be 4840 and it'll only work as the principal amount for simple interest.
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