Jaspreet deposited a sum of ₹58,550 at 20% rate of interest per annum, compounded annually. The total amount (in ₹) received by Jaspreet after 2 years will be:
84,312
To calculate the total amount Jaspreet received after 2 years, we need to use the compound interest formula:
A = P (1 + r/n)^(nt)
Where:
- A = the future value of the investment/loan, including interest
- P = the principal investment amount (the initial deposit)
- r = the annual interest rate (decimal)
- n = the number of times that interest is compounded per year
- t = the number of years the money is invested or borrowed for
In this case:
- P = ₹58,550
- r = 20% = 0.20
- n = 1 (compounded annually)
- t = 2 years
Plugging the values into the formula:
A = 58550 (1 + 0.20/1)^(1*2)
A = 58550 (1 + 0.20)^2
A = 58550 (1.20)^2
A = 58550 * 1.44
A = 84312
Therefore, the total amount received by Jaspreet after 2 years will be ₹84,312.
Similar Questions
- On a certain sum, at the same rate of interest, the simple interest is ₹66 and compound interest is ₹69 for 2 years. What is the sum (in ₹)?
- If the amount obtained on ₹1,000 at 5% interest per annum for 2 years is invested at the same rate of interest on compound interest for 4 years, then what will be the average interest earned?
Important Questions from Simple and Compound Intrest
Amit had invested same amount of sums at simple as well as compound interest, compounded annually. The time period of investment for both the sums was 2 years and rate of interest too was the same, 4% per annum. At the end, he found a difference of ₹43 in both the interests received. What were the sums (in ₹) invested?
When the difference between compound interest, compounded annually, and simple interest for three years is ₹186 at 10% interest per annum, the principal is ₹______.
- When the difference between compound interest, compounded annually, and simple interest for three years is ₹217 at 10% interest per annum, the principal is ₹______.
- When the difference between compound interest, compounded annually, and simple interest for three years is ₹228 at 4% interest per annum, the principal is ₹______.
- The difference between the compound interest, compounded annually and the simple interest if ₹17,700 is deposited at 4% rate of interest per annum for 2 years is:
