Question

Find the amount and the compound interest on Rs 10000 at 5% per annum, for 2 years compounded annually.

Answer 1

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

$A=10,000{(1+\frac{5}{100})}^2$

$A=10,000{\left(\frac{105}{100}\right)}^2$

$A=10,000\times \frac{105}{100}\times \frac{105}{100}$

$A=105\times 105=Rs.11,025$

$I=A-P=11,025-10,000=Rs.1,025$