What is the Compound Interest on

Question

Rs.24,000 at 15% per annum for 2/3 years? 

 

 

Answer 1

Calculate the compound interest by using formula : A = Pe^{r t}, where A = amount, P = Principal, r = annual interest rate in decimal form and t = time in years.

To find the amount, substitute P = 24,000, r = 15% = 0.15 and t = 2/3 in the above formula.

A = 24000 * e ^{0.15 * 2/3}

A = 24000 * e ^0.1

A = 24000 * (1.105170918)

A = 26,524.1020338155

A = 26,524 rupees.

The compound interest : I = A - P

I = 26,524 - 24,000

I = 2524 rupees.