What will be the compound interest on a sum of ₹6,455 after 2 years at the…

Step-by-Step Solution

1. Identify the Variables:

   • Principal (P) = 6455

   • Rate (r) = 20%

   • Time (n) = 2 years

2. Use the Amount Formula for Compound Interest: The formula to find the total amount (A) is: A = P * (1 + r/100)^n

3. Perform the Calculation:

   • A = 6455 * (1 + 20/100)^2

   • A = 6455 * (1.20)^2

   • A = 6455 * 1.44

   • A = 9295.20

4. Find the Compound Interest: The compound interest (CI) is the total amount minus the principal:

   • CI = A - P

   • CI = 9295.20 - 6455 = 2840.20