Please show full calculation for compound interest on Rs 6755 at 5% p.a. for a 2-year amount
Shiv Answered question
There are two ways you can do this.
1) using formula
Compound interest is given by
C = p((1+r)^n)-1)
Where
p = amount invested = 6755
r = interest rate = 5%
n = time to maturity = 2 year
C = Compound interest = ??
therefore,
C = 6755((1+5%)^2 -1) = 692.38
2) Line process method,
year
calculation
Interest
1
6755 * 5%
337.75
2
337.5 + 337.5*5%
354.375
Total
692.125
Shiv Edited answer
Write your answer.