Find the amount and compound interest on ₹ 6000 for 2 years at 9% pe

1.	Find the amount and compound interest on ₹ 6000 for 2 years at 9% per annum compounded annually.
Answer» Given: Present value= ₹ 6000 Interest rate= 9% per annum Time=2 years To find the amount we have the formula, Amount (A) = P (1+(R/100))ⁿ Where P is present value, r is rate of interest, n is time in years. Now substituting the values in above formula we get, ∴ A = 6000 (1 + 9/100)² ⇒ A = 6000 (109/100)² ⇒ A = 6000 (1.09)² ⇒ A = 7128.6 ⇒ A = ₹ 7128.6 ∴ Compound interest = A – P = 7128.6 – 6000= ₹ 1128.6

Find the amount and compound interest on ₹ 6000 for 2 years at 9% per annum compounded annually.

Answer»

Given:

Present value= ₹ 6000

Interest rate= 9% per annum

Time=2 years

To find the amount we have the formula,

Amount (A) = P (1+(R/100))ⁿ

Where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴ A = 6000 (1 + 9/100)²

⇒ A = 6000 (109/100)²

⇒ A = 6000 (1.09)²

⇒ A = 7128.6

⇒ A = ₹ 7128.6

∴ Compound interest = A – P

= 7128.6 – 6000= ₹ 1128.6