Subjects algebra

Compound Interest 5E8Ea8

Step-by-step solutions with LaTeX - clean, fast, and student-friendly.

Search Solutions

Compound Interest 5E8Ea8


1. **Problem Statement:** Find the formula for yearly compound amount (CA) for principal Rs. 'P', time 'T' years, and rate of interest R% per annum. 2. **Formula:** The compound amount after T years with annual compounding is given by: $$CA = P \left(1 + \frac{R}{100}\right)^T$$ This formula means the principal amount grows by a factor of $\left(1 + \frac{R}{100}\right)$ each year, compounded annually. 3. **Important Rules:** - The rate R is expressed as a percentage, so divide by 100 to convert to decimal. - Compound interest means interest is added to the principal each year, so next year's interest is on the increased amount. 4. **Find the annual rate of compound interest offered by the bank:** Given data is incomplete here, but if you have the principal, time, and compound amount, you can find R by rearranging the formula: $$R = 100 \left(\left(\frac{CA}{P}\right)^{\frac{1}{T}} - 1\right)$$ 5. **Find compound amount at the end of 2 years:** Use the formula with $T=2$: $$CA = P \left(1 + \frac{R}{100}\right)^2$$ Substitute the values of P and R to get the amount. **Final answers depend on given numerical values which are not fully provided here.**