Question

Find the compound interest when Principal is Rs $10000$ and rate is $10$% for $2$ years.

Answer 1

$P=Rs10000$

$R=10$

$T=2$

Interest for the $1^{st}$ year $=Rs\frac{10000\times 10\times 1}{100}=Rs1000$

Amount after the $1^{st}$ year $=Rs10000+Rs1000=Rs11000$

Interest for the $2^{nd}$ year $=Rs\frac{11000\times 10\times 1}{100}=Rs1100$

Amount after the $2^{nd}$ year $=Rs11000+Rs1100=Rs12100$

$\therefore$ Compound Interest $=Rs12100-Rs10000=Rs2100$