Question

Find the approx amount when Rs. $10,000$ is invested for $2\frac{1}{2}$ years at $10$% interest compounded yearly.

Answer 1

Solution:-

Principal amount $\left(P\right)=Rs.10000$

Time $\left(t\right)=2.5yrs$

Rate of interest $\left(r\right)=10$

For compound interest,

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

where,

$A=$ Total amount

$\Rightarrow A=10000\times {(1+\frac{10}{100})}^{2.5}$

$\Rightarrow A=10000\times {\left(1.1\right)}^{2.5}=10000\times 1.269=12690$

Approx amount $=Rs.12690$

Hence, the correct answer is $12690$.