Given: Principal, P = ₹ 5000rate of interest, r = 20%,and time period, n = 2 years.
We know that, Amount,
A=P(1+R100)n (1 mark)
A=5000[1+20100]2=₹ 7200
So, compound interest,CI = Amount - Principal⇒CI=₹ 7200−₹ 5000=₹ 2200
(1 mark)