Question

Find the compound Interest for Rs.18,800 ,calculated for 2 years at 13% rate of Interest compounded annually

Answer 1

For compound interest, the formula is given below:

Amount = $P(1+\frac{r}{100} )^{n}$

Here, P = 18,800

n = 2

r = 13/100

So, Amount = $18,800(1+\frac{13}{100} )^{2}$

$18,800(1.13)^{2}$

= 18,800 × 1.2769

= 24005.72

Compound Interest = Amount - Principal

Compound Interest = 24005.72 - 18800

= 5205.72

Hence, the compound interest for Rs.18,800, calculated for 2 years at 13% rate of interest compounded annually is Rs.5205.72.