Compound Interest
Compound InterestHalf yearly compound interestQ. A man deposited Rs. 60,000 in the bank for 2 years. If the ratw of compound interest is 15 paisa per rupee per year. Find out the compound interes...
Compound Interest
Compound Interest
Yearly compound interest
Q. Find the compound interest of Rs. 2000 at 20% rate of interest compounded annually for 3 years.
Given: Principle (P)= Rs. 2000 Rate (R)= 20% Time (T)= 3yrs Compound interest (C.I) = ?
Soln:
(C.I) = P[(1+R/100)T - 1]
= 2000 [ (1+ 20/100)3 - 1)]
= 2000 [ (1+ 0.2)3 - 1]
= 2000 [(1.2)3 - 1]
= 2000 [1.728 -1]
= 2000 * 0.728
= 1456
Therefore, C.I for 3 years is Rs.1456.
