Question
Suresh placed Rs. 6,000 into an investment plan that
accrues compound interest at an annual rate of 15%, compounded yearly. Calculate 80% of the compound interest earned after two years.Solution
Compound interest received by Suresh = 6000 Ă— {1 + (15/100)}2 – 6000 = 6000 Ă— 1.152 – 6000 = 7935 – 6000 = Rs. 1,935 So, 80% of the compound interest received = 1935 Ă— 0.8 = Rs. 1,548Â
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