What would be the compound interest obtained on an amount of Rs. 2400 at the rate of 15 per cent per annum after 2 years?

To calculate the compound interest, we use the formula:

\[
A = P \left(1 + \frac{r}{100}\right)^n
\]

Where:
- \( P \) is the principal amount (Rs. 2400)
- \( r \) is the annual interest rate (15%)
- \( n \) is the number of years (2 years)
- \( A \) is the amount after \( n \) years

First, we calculate the total amount \( A \) after 2 years:

\[
A = 2400 \left(1 + \frac{15}{100}\right)^2
\]

\[
A = 2400 \left(1 + 0.15\right)^2
\]

\[
A = 2400 \times (1.15)^2
\]

\[
A = 2400 \times 1.3225 = 3174
\]

The compound interest \( CI \) is the difference between the total amount \( A \) and the principal \( P \):

\[
CI = A - P = 3174 - 2400 = 774
\]

So, the compound interest obtained after 2 years is **Rs. 774**.

Would you like more details on any part of this calculation, or do you have any other questions?

Here are 5 related questions to explore further:
1. How does compound interest differ from simple interest?
2. What would be the compound interest for 3 years instead of 2 years?
3. How does the compound interest change if compounded semi-annually instead of annually?
4. What is the formula for compound interest when compounded quarterly?
5. How does increasing the interest rate to 18% affect the compound interest?

**Tip:** When calculating compound interest, the frequency of compounding (annually, semi-annually, quarterly, etc.) can significantly affect the final amount.

Learn how to calculate compound interest on an amount of Rs. 2400 at the rate of 15% per annum after 2 years. Understand the compound interest formula A = P (1 + r/100)^n and its application in this context. Suitable for students in Grades 7-9.

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