Question

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

Rs 6000 for 2 years at $9\%$ per annum compounded annually.

Answer 1

$\text{Principal (P) = Rs. 6000}\text{Rate (R)}=9\%p.a.\text{Period (n) = 2 years}\text{Amount (A)}=P{(1+\frac{R}{100})}^n=Rs.6000{(1+\frac{9}{100})}^2=Rs.6000\times {\left(\frac{109}{100}\right)}^2=Rs.6000\times \frac{109}{100}\times \frac{109}{100}=Rs.\frac{71286}{10}=Rs.7128.60C.I=A-P=Rs.7128.60-Rs.6000=Rs.1128.60$