Question

Find the compound interest on Rs. 12,000 for 2 years at 4% per anum.

Answer 1

Given: $P=Rs.12,000,R=4\%$ and $n=2$ years.
Using the formula,
Total amount after two years = $A=P{(1+\frac{R}{100})}^n$ we get
$A=12000{(1+\frac{4}{100})}^2=12000{\left(\frac{104}{100}\right)}^2$
$=12000(1.04{)}^2=12,\mathrm{979.2.}$ Rs.

Therefore,
$C.I.=A-P=Rs.12,979.2-Rs.12,000=Rs.979.2$.