find compound interest on rs. 2750 at 4.00% p.a.for 6 years

Question

this question is on compound interest so i just want the solved answer pl do it.

Answer 1

P = Po*(1+r)^t

Po = 2750

If compounding annually:

r = 0.04

t = 6

P = 2750*(1.04)^6

P = 2750*1.2653190185

P = 3479.62730086

but it's money so

P = 3479.63

we want interest, so we have to subtract out the original 2750

Pinterest = 3479.63 - 2750

Pinterest = 729.63

Answer:  rs. 729.63

 

If compounding monthly:

r = 1 + 0.04/12 = 1.003333

t = 6*12 = 72

P = 2750*(1.003333)^72

P = 2750*1.27074187878

P = 3494.54016663

but we're talking about money so

P = 3494.54

we want interest, so we have to subtract out the original 2750

Pinterest = 3494.54 - 2750

Pinterest = 744.54

Answer:  rs. 744.54

 

If compounded continuously:

P = Po*e^(rt)

Po = 2750

r = 0.04

t = 6

P = 2750*e^(0.04*6)

P = 2750*e^(0.24)

P = 2750*1.27124915032

P = 3495.93516338

but it's money so:

P = 3495.94

we want interest so we subtract out the original 2750

Pinterest = 3495.94 - 2750

Pinterest = 745.94

Answer: rs. 745.94