Question 104

What will be the compound interest on a sum of Rs. 7200 at 5 pcpa in 2 years ?

Solution

Compound Interest = $$7200(1+5\%)^{2}$$ (As C.I. = $$P(1+r\%)^{n}$$ Where P is the principal amount, r is the rate and n is the

number of years)

Hence, answer will be = 7200(1.05)(1.05) = 7938

So interest will be = 7938-7200 = 738

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