Question

Find the compound interest if the amount of a certain principal after two years is Rs 4036.80 at the rate of 16 p.c.p.a.

Answer 1

Here, A = Rs 4036.80, R = 16 p.c.p.a. and N = 2 years

ii. Interest = Amount (A) – Principal (P) 

= 4036.80 – 3000 

= Rs 1036.80 

∴ The compound interest after 2 years would be Rs 1036.80.