What is the compound amount of Tk. 4000 for 2 years at a rate of interest 5% per annum?


A

Tk. 5200


B

Tk. 4520


C

Tk. 4410


D

Tk. 3810


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Question: What is the compound amount of Tk. 4000 for 2 years at a rate of interest 5% per annum?

Solution:
Given,
Principal, P = 4000
Rate, r = 5% = 5/100 = 1/20
Time, n = 2 years

We know,
A = P(1 + r)n
= 4000 × (1 + 1/20)2
= 4000 × (21/20)2
= (4000 × 21 × 21)/(20 × 20)
= (4000 × 441)/400
= 4410

∴ The compound amount is Tk. 4410.

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Updated: 1 day ago

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