Question
Find the compound interest on Rs. 4000 at 10% per annum
for 2 years, compounded annually.Solution
Amount A = P(1 + r/100)Β² = 4000 Γ (1 + 10/100)Β² = 4000 Γ (1.10)Β² = 4000 Γ 1.21 = 4840 Compound interest = A β P = 4840 β 4000 = 840 Answer: Rs. 840
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