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Gnesinka [82]
3 years ago
12

Find the amount and the compound interest on rupees 5000 for 2 years at 6% per annum, Interest payable yearly. Answer with full

steps and formula NO BAD ANSWERS REQUIRED :D
Mathematics
1 answer:
solniwko [45]3 years ago
5 0

Answer:

I. Amount = 5618 Rupees

II. Compound interest = 618 Rupees

Step-by-step explanation:

  • Given the following data;
  • Principal = 5000 Rupees
  • Time = 2 years
  • Interest rate = 6%

To find the compound interest;

Mathematically, compound interest is calculated using the formula;

A = P(1 + r)^t

Where;

  • A is the future value.
  • P is the principal or starting amount.
  • r is annual interest rate.
  • t is the number of years for the compound interest.

Substituting into the formula, we have;

A = 5000(1 + 0.06)^2

A = 5000(1.06)^2

A = 5000 * 1.1236

<em>A = 5618 Rupees</em>

Next, we would determine the compound interest using the formula;

C.I = A - P

C.I = 5618 - 5000

<em>Compound interest (C.I) = 618 Rupees</em>

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