# compound interest

compute the compound interest on

1)Rs 1500 for 2years at 6% per annum.

please send answer

This site explains compound interest and shows the formula for solving your problem.

http://math.about.com/library/weekly/aa042002a.htm

## To calculate compound interest, you can use the formula:

A = P(1 + r/n)^(n*t)

Where:

A = the future value of the investment/loan, including interest

P = the principal investment/loan amount

r = annual interest rate (in decimal form)

n = number of times that interest is compounded per year

t = number of years

In this case, we have:

P = Rs 1500

r = 6% per annum, which is equal to 0.06 as a decimal

t = 2 years

Let's assume that the interest is compounded annually in this case (n = 1).

Now, we can substitute the values into the formula:

A = 1500(1 + 0.06/1)^(1*2)

A = 1500(1 + 0.06)^2

A = 1500(1.06)^2

A = 1500(1.1236)

A = Rs 1,685.40

Therefore, the compound interest on Rs 1500 for 2 years at 6% per annum is Rs 185.40.

## To compute compound interest, you can use the formula:

A = P(1 + r/n)^(nt)

Where:

A = the future value of the investment

P = the principal amount (initial investment)

r = the annual interest rate (expressed as a decimal)

n = the number of times that interest is compounded per year

t = the number of years

In your case, you have:

P = Rs 1500

r = 6% per annum = 0.06 (expressed as a decimal)

n = 1 (interest is compounded annually)

t = 2 years

Plugging in these values into the formula, we can calculate:

A = 1500(1 + 0.06/1)^(1*2)

= 1500(1 + 0.06)^2

= 1500(1.06)^2

≈ 1697.64

So, the compound interest on Rs 1500 for 2 years at 6% per annum is approximately Rs 197.64.

Please note that the website provided is a helpful resource for understanding and further exploring compound interest.