Question

Find the value and the compound interest if £4000 is invested for 2 years at 36% p.a.

Final value = £

Interest = £

Answer 1

• Principal=P=4000
• Time=T=2years
• Rate of interest =R=36

Interest be I

$\\ \sf\longmapsto I=\dfrac{PRT}{100}$

$\\ \sf\longmapsto I=\dfrac{4000(2)(36)}{100}$

$\\ \sf\longmapsto I=\dfrac{288000}{100}$

$\\ \sf\longmapsto I=2880$

Now

Final value=4000+2880=6880