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Compute the Amount and the Compound Interest In the Following by Using the Formulae When: Principal = Rs 2000, Rate = 4 Paise per Rupee per Annum, Time = 3 Years

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Question

Compute the amount and the compound interest in  the following by using the formulae when:
Principal = Rs 2000, Rate = 4 paise per rupee per annum, Time = 3 years

Sum
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Solution

\[\text{ Applying the rule A = P }\left( 1 + \frac{R}{100} \right)^n \text{ on the given situations, we get: }\]
\[A = 2, 000 \left( 1 + \frac{4}{100} \right)^3 \]
\[ = 2, 000 \left( 1 . 04 \right)^3 \]
 = Rs 2, 249 . 68
Now, 
CI = A - P
= Rs 2, 249 . 68 - Rs 2, 000
 = Rs 249 . 68

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