What is the compound amount of Tk. 3200 for 2 years at a rate of interest 5% per annum?

A

Tk. 3500

B

Tk. 3528

C

Tk. 3640

D

Tk. 3568

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Question: What is the compound amount of Tk. 3200 for 2 years at a rate of interest 5% per annum?

Solution:
Given,
Principal, P = 3200
Rate, r = 5% = 5/100 = 1/20
Time, n = 2 years

We know,
A = P(1 + r)n
  = 3200 × (1 + 1/20)2
  = 3200 × (21/20)2
  = (3200 × 21 × 21) / (20 × 20)
  = (3200 × 441) / 400
  = 1411200 / 400
  = 3528

The compound amount is Tk. 3528.

 

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Updated: 8 hours ago

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