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 sum of money triples itself at a certain rate of compound interest in 11 years. In how many years will it amount to 27 times of itself?
A sum of ₹10,000 amounts to ₹12,321 in 2 years at a certain rate of interest per annum, compounded annually. The rate of interest per annum is:
- If the interest earned during the 2nd year on a certain sum is ₹2,352, and the rate of interest is 5% per annum compounded annually, then the sum is:
- A sum of money triples itself at a certain rate of compound interest in 17 years. In how many years will it amount to 81 times of itself?
If the interest earned during the $2^{nd}$ year on a certain sum is ₹3,342, and the rate of interest is 20% per annum compounded annually, then the sum is:
