Question

Find CI on Rs. 12600 for 2 years at 10% per annum compounded annually.

Answer 1

We have,

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

Here, $P=Rs.12600,R=10,n=2$

Therefore,

$A=12600(1+\frac{10}{100}{)}^2=12600(\frac{11}{10}{)}^2$

$=12600\times \frac{11}{10}\times \frac{11}{10}=Rs.15246$

$CI=A-P=Rs.15246-Rs.12600=Rs.2646$