Question

Calculate the amount and the compound interest on Rs.$12,000$ in $2$years and at $10\%$ per year.

• A. $Rs.14,520$ and $Rs.2,520$
• B. $Rs.14,000$ and $Rs.2,000$
• C. $Rs.13,520$ and $Rs.2,820$
• D. $Rs.17,520$ and $Rs.2,120$

Answer 1

The correct option is A $Rs.14,520$ and $Rs.2,520$

Amount after $n$ of compound interest annually $A=P{(1+\frac{R}{100})}^n$
So, required Amount after $2$ years $A=Rs12,000\times {(1+\frac{10}{100})}^2=Rs12,000\times {1.1}^2=Rs14,520$
And $C.I$ = $A-P=Rs14,520-Rs12,000=Rs2,520$