Sum(P)=Rs.20,000
Rate of interest (R)=10%
I=R/100=10/100=0.1
73 days=73/365=1/5years.. ( assuming 1year=365 days)
Period (N)=2years and 73 days=2 1/5 years
Step 1
Find the amount for 2 years using compound interest formula
A=P(1+I)n
A=20000(1+0.1)^2=20000(1.1)^2=20000*1.21
=Rs24200
Step 2
On this amount calculate the simple interest for 1/5 years at 10% interest and the amount
P=24200,R=10%N=1/5
Amount= P+PNR/100=24200+(24200*10/100*1/5}
Amount=24200+404=Rs.24604
Compound interest=24604–20000=4604
Compound interest=Rs.4604
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Answers & Comments
Sum(P)=Rs.20,000
Rate of interest (R)=10%
I=R/100=10/100=0.1
73 days=73/365=1/5years.. ( assuming 1year=365 days)
Period (N)=2years and 73 days=2 1/5 years
Step 1
Find the amount for 2 years using compound interest formula
A=P(1+I)n
A=20000(1+0.1)^2=20000(1.1)^2=20000*1.21
=Rs24200
Step 2
On this amount calculate the simple interest for 1/5 years at 10% interest and the amount
P=24200,R=10%N=1/5
Amount= P+PNR/100=24200+(24200*10/100*1/5}
Amount=24200+404=Rs.24604
Compound interest=24604–20000=4604
Compound interest=Rs.4604