Question

Rs 10000 for 2 years at $11\%$ per annum is compounded annually. Find the amount of interest.

Answer 1

Given,

Principal$=$Rs. $10000$

Rate $=11\%$

Time $=2$ years

Compound$=P{(1+\frac{r}{100})}^2$

$=10000{(1+\frac{11}{100})}^2$

$=10000\times \frac{(111{)}^2}{10000}$

$=12321$

Amount$=12321-10000$$=2321$.