Question

Calculate the amount and compound interest for Rs. 12,000 for 2 years at 10% compounded annually.

Answer 1

Here $P=12,000$ Rs., $n=2$ years, $R=10$

Amount$\left(A\right)=P{(1+\frac{R}{100})}^n$

$=12000{(1+\frac{10}{100})}^2$

$=12000{\left(\frac{11}{10}\right)}^2$

$=\frac{12000\times 121}{100}$

$=14,520$ Rs.

Compound interest$(C.I)=A-P=14,520-12,000=2520$

Hence, the compound interest is Rs. $2,520$