Find the amount and the compound intrest on 5000 for 2 yrs at 6% p.a intrest payable yearly.
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Find the amount and the compound intrest on 5000 for 2 yrs at 6% p.a intrest payable yearly.
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Answer:
Step By Step Explanation:
Given:
To Find:
Now, we know that
=> Amount = P[1 + (r/100)]ⁿ
=> Amount = 5000[1 + (6/100)]²
=> Amount = 5000[(100 + 6)/100]²
=> Amount = 5000[106/100]²
=> Amount = 5000[1.06]²
=> Amount = 5000 × 1.1236
=> Amount = Rs. 5618
Hence, Amount = Rs. 5618
Now, we will find Compound Interest,
=> CI = Amount - Principal Amount
=> CI = 5618 - 5000
=> CI = 618.