What will be the compound interest on Rs 4000 in two years when rate of interest is 5% per annum?

Explanation

`A = P (1 + R/100)^n`
`= 4000 (1 + 5/100)^2`
`= 4000 (105/100)^2 `
`=` Rs `4410 `
∴ Compound Interest
`= A – P`
`=` Rs `4410 – `Rs `4000`
`=` Rs `410`