Question

Find the compound interest on Rs 12600 for 2 years at $10\%$ per annum compounded annually. [2 MARKS]

Answer 1

Formula : 0.5 Mark
Application and Calculation : 1.5 Mark

$A=P\times {[1+\frac{R}{100}]}^n$

Principal(P) = Rs 12600,

Rate(R) = 10,

Number of years(n) = 2

$\therefore A=Rs.12600\times {[1+\frac{10}{100}]}^2$

$A=Rs.12600\times {\left[\frac{11}{10}\right]}^2$

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

$A=Rs.15246$

$\therefore$ CI = A - P

C.I = Rs. 15246 - Rs. 12600

C.I= Rs. 2646