Question

By using the formula, find the amount and compound interest on:

Rs 10000 for 2 years at $11\%$ per annum compounded annually.

Answer 1

$\text{Principal (P) = Rs. 10000}\text{Rate (R)}=11\%p.a.\text{Period (n) = 2 years}\therefore \text{Amount (A)}=P={(1+\frac{R}{100})}^n=10000{(1+\frac{11}{100})}^{2}Rs.10000\times {\left(\frac{111}{100}\right)}^2=Rs.10000\times \frac{111}{100}\times \frac{111}{100}=Rs.12321\text{C.I = A - P = Rs. 12321 - 10000 = Rs. 2321}$