An amount of Tk. 6000 lent 5% per annum compounded interest for 2 years will become?

Question: An amount of Tk. 6000 lent 5% per annum compounded interest for 2 years will become?

Solution:
Here,
Principal, P = Tk. 6000
Rate of interest, r = 5% = 5/100 = 1/20
Time, n = 2 years.

We know,
C = P (1 + r)ⁿ
= 6000 × {1+ (1/20)}²
= 6000 × {(21/20) × (21/20)}
= 6000 × (441/400)
= 6615

∴ Compound Interest Tk. 6615.