Question
Khan lends an amount of ₹10,000 to Irfan at 10% per
annum compound interest for 5 years, compounded annually. What is the compound interest accrued for the 4 year?Solution
10000(1 + 10/100)4 - 10000(1 + 10/100)3 10000(1 + 1/10)4 10000(1 + 1/10)3 10000(11/10)4 - 10000(11/10)3 10000 x 14641/10000-10000 × 1331/1000 14641-13310 =1331 So, the interest of the 4th year = Rs. 1331
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