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
- If the interest earned during the $2^{\text{nd}}$ year on a certain sum is ₹6,258, and the rate of interest is 20% per annum compounded annually, then the sum is:
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- Simple interest on a sum of money, at $5\%$ per annum for 2 years, is ₹50. The compound interest on the same sum for the same period at the same interest rate is:
Find the interest (in ₹) on ₹8,000 at 10% per annum compounded half yearly for $1\frac{1}{2}$ years.
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Important Questions from Simple and Compound Intrest
- The difference between the simple interest and the compound interest, compounded annually, on a certain sum of money for 2 years at 16% per annum is ₹797. Find the sum (rounded off to the nearest integer).
- 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:
- The difference between the simple interest and the compound interest, compounded annually, on a certain sum of money for 2 years at 10% per annum is $₹407$. Find the sum [rounded off to the nearest integer].
The difference between the simple interest and the compound interest, compounded annually, on a certain sum of money for 2 years at 17% per annum is ₹967. Find the sum [rounded off to the nearest integer].
- When the difference between compound interest, compounded annually, and simple interest for three years is ₹217 at 10% interest per annum, the principal is ₹______.
