Question
A sum of ₹20,000 is invested at a compound interest
rate of 5% per annum for 4 years. What will be the total amount after 4 years, and what is the total compound interest earned?Solution
Amount = Principal * (1 + Rate)^Time Amount = 20,000 * (1 + 0.05)^4 = 20,000 * (1.21550625) = ₹24,310.13 Compound Interest = Amount - Principal = 24,310.13 - 20,000 = ₹4,310.13
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