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

We know that amount A at the end of n years at the rate of R % per annum is given by A = P\[ \left( 1 + \frac{R}{100} \right)^n . \]Given: P = Rs 4, 000R = 5 % p . a .n = 2 yearsNow,\[A = 4, 000 \left( 1 + \frac{5}{100} \right)^2 \]\[ = 4, 000 \left( 1 . 05 \right)^2 \] = Rs 4, 410And, CI = A - P = Rs 4, 410 - Rs 4, 000

 = Rs 410