Compound Interest Calculation Explained
This question requires calculating the compound interest (CI) on a given principal amount over a specific period and rate.
Given Values:
- Principal (P) = ₹7,500
- Rate (R) = 4% per annum
- Time (T) = 2 years
Calculation Steps:
The formula to calculate the total amount (A) after compound interest is applied is:
$ A = P \left( 1 + \frac{R}{100} \right)^T $
Substitute the given values:
$ A = 7500 \left( 1 + \frac{4}{100} \right)^2 $
$ A = 7500 \left( 1 + 0.04 \right)^2 $
$ A = 7500 \left( 1.04 \right)^2 $
$ A = 7500 \times 1.0816 $
$ A = 8112 $
The compound interest (CI) is the difference between the final amount (A) and the principal (P):
$ CI = A - P $
$ CI = 8112 - 7500 $
$ CI = 612 $
Final Answer:
The compound interest is ₹612.
Similar Questions
- There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of ₹10,000 after 3 years at the same rate?
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- A deposited ₹8,000 in a bank at 8% per annum simple interest. B deposited ₹6,000 at 10% compound interest per annum. After 3 years the difference between their interest will be:
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Important Questions from Simple and Compound Intrest
The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. The rate of interest per annum is?
A sum of Rs. 2000 amounts to Rs. 4000 in two years at compound interest. In how many years does the same amount becomes Rs. 8000?
If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, the compound interest on the same at the same rate and for the same time is:
- Amit invested the same sum at simple and compound interest (compounded annually) for 2 years at 4% per annum. The difference between the compound interest and the simple interest is ₹47. Find the sum (in ₹) invested in each case.
- Amit invested equal amounts at simple interest and compound interest, compounded annually, for 2 years at the same rate of 4% per annum. In the end, he found a difference of ₹53 between the two interests earned. What was the amount (in ₹) invested in each case?
