Question

Find the amount and the compound interest on Rs 2500 for 2 years at $10$ per annum, compounded annually.

Answer 1

Principal $\left(P\right)=Rs.2500$

Rate $\left(r\right)=10\%$ Per annum

Time $\left(t\right)=2$ years

Amount, $A$ is given by the formula

$A=P(1+\frac{r}{100}{)}^t$

$=2500(1+\frac{10}{100}{)}^2$

$=2500\times \frac{11}{10}\times \frac{11}{10}$

$=25\times 11\times 11$

$=Rs.3025$

Compound Interest $=$ Amount $-$ Principal

$=3025-2500=Rs.525$