What is the compound interest on Rs 4000 for 2 years at the rate of 10% per annum?

Saving

The power of compounding grows your savings faster

3 minutes

The sooner you start to save, the more you'll earn with compound interest.

Compound interest is the interest you get on:

• the money you initially deposited, called the principal
• the interest you've already earned

For example, if you have a savings account, you'll earn interest on your initial savings and on the interest you've already earned. You get interest on your interest.

This is different to simple interest. Simple interest is paid only on the principal at the end of the period. A term deposit usually earns simple interest.

Save more with compound interest

The power of compounding helps you to save more money. The longer you save, the more interest you earn. So start as soon as you can and save regularly. You'll earn a lot more than if you try to catch up later.

For example, if you put $10,000 into a savings account with 3% interest compounded monthly:

• After five years, you'd have $11,616. You'd earn $1,616 in interest.
• After 10 years you'd have $13,494. You'd earn $3,494 in interest.
• After 20 years you'd have $18,208. You'd earn $8,208 in interest.

Compound interest formula

To calculate compound interest, use the formula:

A = P x (1 + r)n

A = ending balanceP = starting balance (or principal)r = interest rate per period as a decimal (for example, 2% becomes 0.02)

n = the number of time periods

How to calculate compound interest

To calculate how much $2,000 will earn over two years at an interest rate of 5% per year, compounded monthly:

1. Divide the annual interest rate of 5% by 12 (as interest compounds monthly) = 0.0042

2. Calculate the number of time periods (n) in months you'll be earning interest for (2 years x 12 months per year) = 24

3. Use the compound interest formula

A = $2,000 x (1+ 0.0042)24A = $2,000 x 1.106

A = $2,211.64

Lorenzo and Sophia compare the compounding effect

Lorenzo and Sophia both decide to invest $10,000 at a 5% interest rate for five years. Sophia earns interest monthly, and Lorenzo earns interest at the end of the five-year term.

After five years:

• Sophia has $12,834.
• Lorenzo has $12,500.

Sophia and Lorenzo both started with the same amount. But Sophia gets $334 more interest than Lorenzo because of the compounding effect. Because Sophia is paid interest each month, the following month she earns interest on interest.

12.

A sum of ₹ 2,000/- amounts to ₹ 4,000/- in two years at compound interest. In how many years does the same amount become ₹ 8,000/-?

B.

4

If ₹ 2000 takes 2 years to become ₹ 4000, then it would take 4 years to become ₹8000/-

We know that amount A at the end of n years at the rate of R % per annum is given by A = P\[ \left( 1 + \frac{R}{100} \right)^n . \]Given: P = Rs 4, 000R = 5 % p . a .n = 2 yearsNow,\[A = 4, 000 \left( 1 + \frac{5}{100} \right)^2 \]\[ = 4, 000 \left( 1 . 05 \right)^2 \] = Rs 4, 410And, CI = A - P = Rs 4, 410 - Rs 4, 000

 = Rs 410

Question 2 Compound Interest Exercise 14.1

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Answer:

Given details are,

Principal (p) = Rs 4000

Rate (r) = 5%

Time = 2years

By using the formula,

A = P (1 + R/100) n

= 4000 (1 + 5/100)2

= 4000 (105/100)2

= Rs 4410

∴ Compound Interest = A – P = Rs 4410 – Rs 4000 = Rs 410

Video transcript

hello friends welcome to lido's homework solution today we are going to explore this question the question is mention the functions of the following spines tendrils and scale lifts let's look at it one by one this is the part of a cactus plant let's look at it what is spines spines are basically leaves are a part of the leaves which gets modified into pointed structures this pointed structures are called as spines so when i look at this uh part of the plant this are spines that is uh these are the pointed structures what does the spines help us the spines help us to reduce loss of water during transpiration in desserts this is what is the function of spines let's look at tendrils tendrils what is a tendril when you have your leaf which is getting modified i repeat when your leaf is getting modified into a thin thread like structure this is called as tendrils so here in this image you can see this is a thin modified thread like coiled structure this is called as tendrils let's look at what i mean by scale leaves scale leaves are thin and dry they can be thin and dry as you can see it for a ginger or as you can see this image this uh is a thick and spl fleshy in the onion bulb so here these are called as scale leaves what is this main function main function is to protect its bird the function of the scale leaves here is to protect the bird this are the functions of spines tendrils and scale leaves if you have any questions please feel free to drop a comment below and subscribe to this channel for regular updates thank you

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