Question
Download Solution PDFFind the Compound Interest on Rs. 1000 for two years at 2% per annum.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Principal = Rs. 1000
Time = 2 years
Rate of interest = 2%
Formula:
C.I = P × [(1 + r/100)n – 1]
Here,
P = Principal Amount
r = Rate of interest
n = Time in years
Calculation:
We know that -
C.I = P × [(1 + r/100)n – 1]
According to the question,
C.I = 1000 × [(1 + 2/100)2 – 1]
⇒ C.I = 1000 × [(1 + 1/50)2 – 1]
⇒ C.I = 1000 × [(51/50)2 – 1]
⇒ C.I = 1000 × 101/50 × 1/50
⇒ C.I = 40.4
∴ The Interest Amount will be Rs. 40.4.
Last updated on Jul 3, 2025
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