The compound interest for a principal amount of Rs. 4000 at a rate of 7.5% for 2 years ₹[[1]].

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

Concept- The compound interest for a principal amount of Rs. 4000 at a rate of 7.5% for 2 years is Rs.622.5.
The inquiry is based on the idea of compound interest. Here, we are provided the principal sum of Rs. 4000, along with the interest rate of 7.5 percent, and the time period is 2 years. The compound interest must be calculated, as requested. So, in this case, we'll utilise the compound interest formula.
If "P" stands for the principal amount, "N" for the time period, and "R" for the interest rate, then the compound interest (CI) with these parameters is given by the following formula:
Question Image

Given :
Principal = p = ₹4000
Rate = r = 7.5 % ,
Time = t = 2 years
Find the Amount (A) :-
A = p(1 + r)t
A = 4000(1 + 7.5%)²
A = 4000(1 + 0.075)²
A = 4000(1.075)²
A = 4000 × 1.155625
A = 4622.5
Find the compound interest (C.I) :-
C.I = A - p
C.I = 4622.5 - 4000
C.I = 622.5
Hence,
Amount = ₹ 4622.5
Compound Interest = ₹ 622.5
Hence, the correct answer is 622.5.

Watch 3-min video & get full concept clarity