What will be the compound interest (in ₹) on a sum of ₹30,000 after two years at a rate of 16% per annum compounded annually?
10,368
To find the compound interest on a sum of ₹30,000 after two years at an annual interest rate of 16% compounded annually, we will use the formula for compound interest:
CI = P(1 + r/100)n - P
Where:
- P = Principal = ₹30,000
- r = Rate of Interest = 16%
- n = Time Period = 2 years
First, calculate the amount (A) after 2 years using the compound interest formula:
A = 30000(1 + 16/100)2
A = 30000(1.16)2
Calculating further:
A = 30000 × 1.3456
A = ₹40,368
Now, calculate the compound interest (CI):
CI = A - P
CI = 40,368 - 30,000
CI = ₹10,368
Thus, the compound interest after two years is ₹10,368.
Important Questions from Compound Interest
A person borrowed Rs. 10000 on compound interest at the rate of 40 percent per annum. If the interest is compounded half yearly, then what will be the amount to be paid after 1.5 years?
The difference between the compound interest (compounding annually) and the simple interest on a sum of money at the rate of 40 per cent per annum for 2 years is Rs. 2400. What is the amount?
In how many years will a sum of Rs.1875 amount to Rs.2187 at 8 percent p.a. compound interest?
A sum of money has increased by 45% in 9 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
At a certain rate of compound interest a certain sum amounts to Rs. 64800 in 4 years and Rs. 93312 in 6 years. What is the compound interest earned in fifth year?
