What will be the compound interest on Rs 4000

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:

$\mathrm{P}=\mathrm{Rs} 4,000$

$\mathrm{R}=5 \%$ p. a

$\mathrm{n}=2$ years

Now,

$\mathrm{A}=4,000\left(1+\frac{5}{100}\right)^{2}$

$=4,000(1.05)^{2}$

$=\mathrm{Rs} 4,410$

And,

$\mathrm{CI}=\mathrm{A}-\mathrm{P}$

$=\mathrm{Rs} 4,410-\mathrm{Rs} 4,000$

$=\mathrm{Rs} 410$